The debt ceiling or debt limit is a law that determines how much debt the U.S. Treasury can issue. Constant budget deficits require the Treasury to issue more debt in order for the Federal government to pay its bills. If the debt ceiling causes the Treasury to default on its debt, it could lead to catastrophic results. Learn why the debt ceiling is important and what might happen if it isn’t raised.
For more insights on how the policies and politics coming out of Washington affect investors, listen to WashingtonWise Investor, an original podcast from Charles Schwab: https://www.schwab.com/resource-center/insights/content/washingtonwise-investor
TD Ameritrade is where smart investors get smarter. We post educational videos that bring investing and finance topics back down to earth weekly. Have a question or topic suggestion? Let us know. Connect with TD Ameritrade: Facebook: http://bit.ly/TDAmeritradeFacebook Twitter: http://bit.ly/TwitterTDAmeritrade Open an account with TD Ameritrade: http://bit.ly/SignUpTDAmeritrade