Debt Ceiling Crisis: What Did Stocks Do the Last Time the U.S. Nearly Defaulted?
The halting pace of negotiations over the debt ceiling crisis is quite understandably making market participants increasingly nervous. After all, the last time the U.S. government came this close to defaulting on its debt obligations, equity markets absolutely hated it.
History doesn't repeat itself and past performance is not a guarantee of future results. The usual caveats always apply. But a look at what stocks did when debt ceiling negotiations came down to the wire in 2011 is not encouraging at all.