Economists though are divided as to the extent of the impact on the global economy if a default occurs, even if Standard & Poor's downgrades the US credit rating.
In Australia Macquarie Group yesterday warned that a default would impact its business because it would hit investor sentiment and therefore sharemarket derived income.
But Shane Oliver from AMP Capital believes US politicians will wait until the very last minute to make a deal, echoing comments made by Adam Donaldson from CBA earlier this week.
Either way, August 2nd will be an interest day, because it's also when the RBA meets with ANZ yesterday predicting the Reserve will lift the official cash rate.
