{"id":7690,"date":"2023-05-17T21:04:09","date_gmt":"2023-05-17T21:04:09","guid":{"rendered":"https:\/\/imsfund.com\/?p=7690"},"modified":"2023-05-17T21:04:09","modified_gmt":"2023-05-17T21:04:09","slug":"a-u-s-default-could-be-catastrophic-for-real-estate-investors-heres-what-you-need-to-know","status":"publish","type":"post","link":"https:\/\/imsfund.com\/index.php\/2023\/05\/17\/a-u-s-default-could-be-catastrophic-for-real-estate-investors-heres-what-you-need-to-know\/","title":{"rendered":"A U.S. Default Could Be Catastrophic For Real Estate Investors\u2014Here&#8217;s What You Need To Know"},"content":{"rendered":"<p> <br \/>\n<\/p>\n<div :class=\"{ 'hidden': $store.proContent.showFullPrompt() }\">\n<section class=\"px-4 relative border border-slate-200 mobile-toc lg:hidden\" x-data=\"{open:false}\">\n<button class=\"flex items-center gap-4 my-2 border-none w-full\"><br \/>\n<svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"h-6 w-6\" fill=\"none\" viewbox=\"0 0 24 24\" stroke=\"currentColor\" stroke-width=\"2\"><path stroke-linecap=\"round\" stroke-linejoin=\"round\" d=\"M4 8h16M4 16h16\"\/><\/svg><\/p>\n<h2 class=\"font-semibold text-slate-800 text-base m-0 js-toc-ignore\">In this article<\/h2>\n<p><\/button><\/p>\n<\/section>\n<p><span data-preserver-spaces=\"true\">The financial press is abuzz again about the debt ceiling deadline and the risks of another government shutdown and perhaps a catastrophic default on U.S. debt if an agreement cannot be reached. The ceiling (currently sitting at\u00a0<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.brookings.edu\/2023\/04\/24\/whats-the-difference-between-a-government-shutdown-and-a-failure-to-raise-the-debt-ceiling\/\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">$31.4 trillion<\/span><\/a><span data-preserver-spaces=\"true\">) is set to be hit on June 1.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">\u00a0<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.washingtonpost.com\/business\/2023\/05\/14\/debt-ceiling-deadline-what-default-means\/\" target=\"_blank\" rel=\"noopener\"><em><span data-preserver-spaces=\"true\">The Washington Post<\/span><\/em><\/a><span data-preserver-spaces=\"true\">\u00a0is particularly apoplectic,<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">\u201cFederal workers furloughed. Social Security checks for seniors on hold. Soaring mortgage rates. A global financial system sent reeling\u2026\u00a0<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">\u201cLeaders from Congress and the White House are trying to forge an agreement to lift the federal debt ceiling, with only a few weeks before the Treasury Department may no longer be able to avert an unprecedented U.S. default. If they fail, and the government can\u2019t meet its payment obligations, economists and financial experts predict chaos.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">\u201c\u2019It would be a lethal combination,\u2019 said Mark Zandi, chief economist at Moody\u2019s. \u2018You can see how this thing could really metastasize and take down the entire financial system, which would ultimately take out the economy.\u2019\u201d<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">Well, that sounds rather bad. So, is this something real estate investors should be concerned about, and if so, how should one prepare?<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">Let\u2019s first start with a quick overview of what\u2019s going on and how such \u201cfiscal cliffs\u201d have gone in the past.\u00a0<\/span><\/p>\n<h2><span data-preserver-spaces=\"true\">A Recent History of Debt Ceiling Debates<\/span><\/h2>\n<p><span data-preserver-spaces=\"true\">The debt ceiling is supposed to set a cap on the total amount of money the United States federal government is authorized to borrow. Over recent years, this \u201cceiling\u201d has, for the most part, been something of a joke.\u00a0<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">As the website for the U.S. Treasury Department\u00a0<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/home.treasury.gov\/policy-issues\/financial-markets-financial-institutions-and-fiscal-service\/debt-limit\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">notes<\/span><\/a><span data-preserver-spaces=\"true\">, \u201cSince 1960, Congress has acted 78 separate times to permanently raise, temporarily extend, or revise the definition of the debt limit.\u201d<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">I\u2019m not sure what you call something that has been raised more than once a year for over half a century, but a \u201cceiling\u201d doesn\u2019t seem like quite the right word for it.\u00a0<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">Every once in a while, however, negotiations break down, and the clock strikes zero before an agreement to either raise the debt ceiling or lower spending (or a mix of the two) is reached. In such cases, a \u201cgovernment shutdown\u201d ensues. Although, it should be noted that such shutdowns are only partial and usually involve furloughing government employees and suspending entitlement payments and the like.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">There have been\u00a0<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/en.wikipedia.org\/wiki\/Government_shutdowns_in_the_United_States\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">10 government shutdowns since 1980<\/span><\/a><span data-preserver-spaces=\"true\">, although the four that took place in the 80s all lasted under a day (two for only about four hours). The longest that occurred before the turn of the century was in 1995 and 1996 and lasted 21 days. Only some agencies were affected, and about 284,000 federal employees were furloughed. (This took place shortly after 800,000 were furloughed in a five-day shutdown a month earlier.)<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">Since the Great Recession and subsequent ballooning of the federal debt, political fights over the debt ceiling have intensified. Since then, there have been two nasty debt ceiling fights that resulted in shutdowns. The nastiest one was probably in 2013, which led to a 16-day shutdown that affected all agencies and led to furloughing 800,000 federal employees.\u00a0<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">A bipartisan \u201csuper committee\u201d was supposed to find $1.5 trillion in cuts over the next 10 years but failed to do so. Thus, we defaulted to an across-the-board (excluding entitlements)\u00a0<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/en.wikipedia.org\/wiki\/2013_United_States_budget_sequestration\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">budget sequestration<\/span><\/a><span data-preserver-spaces=\"true\">\u00a0that basically no one was happy with.\u00a0<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">The cuts lowered spending by about $1.1 trillion over the next eight years below what they would have otherwise been. (Although some of that sequester was subsequently removed).<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">In January 2018, there was the longest shutdown on record\u201435 days\u2014that was predominantly held up over disagreements\u00a0<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.reuters.com\/article\/us-usa-shutdown\/backing-down-trump-agrees-to-end-shutdown-without-border-wall-money-idUSKCN1PJ126\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">about a proposed border wall<\/span><\/a><span data-preserver-spaces=\"true\">. The cost to the government was estimated at $5 billion.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">That\u2019s not chump change, and there were plenty of disruptions from these shutdowns. For example, air travel was strained, national parks were closed, and a bunch of other problems and inconveniences occurred. But there were no major effects. And it almost went without notice to real estate investors as\u00a0<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/fred.stlouisfed.org\/series\/CSUSHPINSA\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">prices showed no effect<\/span><\/a><span data-preserver-spaces=\"true\">\u00a0from any of the shutdowns nor the sequestration.<\/span><\/p>\n<figure class=\"wp-block-image size-full\"><picture decoding=\"async\" class=\"wp-image-152951 sp-no-webp\" title=\"A U.S. Default Could Be Catastrophic For Real Estate Investors\u2014Here's What You Need To Know 2\"><source srcset=\"https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2023\/05\/fredgraph-56.webp 1318w,https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2023\/05\/fredgraph-56-300x102.webp 300w,https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2023\/05\/fredgraph-56-1024x350.webp 1024w,https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2023\/05\/fredgraph-56-768x262.webp 768w\" sizes=\"(max-width: 1318px) 100vw, 1318px\" type=\"image\/webp\"><source srcset=\"https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2023\/05\/fredgraph-56.jpg 1318w, https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2023\/05\/fredgraph-56-300x102.jpg 300w, https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2023\/05\/fredgraph-56-1024x350.jpg 1024w, https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2023\/05\/fredgraph-56-768x262.jpg 768w\" sizes=\"(max-width: 1318px) 100vw, 1318px\" type=\"image\/jpeg\"><img loading=\"lazy\" src=\"https:\/\/bpimg.twic.pics\/https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2023\/05\/fredgraph-56.jpg?twic=v1\/cover=1318:450\/max=1000\/output=preview\" decoding=\"async\" class=\"wp-image-152951 sp-no-webp\" title=\"A U.S. Default Could Be Catastrophic For Real Estate Investors\u2014Here's What You Need To Know 2\" alt=\"S&amp;P\/Case-Shiller U.S. National Home Price Index - St. Louis Federal Reserve\" height=\"450\" width=\"1318\" data-twic-src=\"\/blog\/wp-content\/uploads\/2023\/05\/fredgraph-56.jpg\" data-twic-src-transform=\"cover=1318:450\/*\/max=1000\"\/><noscript><img decoding=\"async\" src=\"https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2023\/05\/fredgraph-56.jpg\" alt=\"S&amp;P\/Case-Shiller U.S. National Home Price Index - St. Louis Federal Reserve\"\/><\/noscript><\/source><\/source><\/picture><figcaption class=\"wp-element-caption\"><em>S&amp;P\/Case-Shiller U.S. National Home Price Index \u2013 <a href=\"https:\/\/fred.stlouisfed.org\/\" target=\"_blank\" rel=\"noreferrer noopener\">St. Louis Federal Reserve<\/a><\/em><\/figcaption><\/figure>\n<p><span data-preserver-spaces=\"true\">If budget deficits were rustling some feathers back in 2013, then said rustling has likely increased several times over as the U.S. budget deficit\u00a0<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/bipartisanpolicy.org\/report\/deficit-tracker\/\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">passed $1.1 trillion<\/span><\/a><span data-preserver-spaces=\"true\">\u00a0for just the first half of fiscal year 2023. And this is after the brunt of the Covid-19 pandemic is no longer there to justify such spending.<\/span><\/p>\n<p class=\"has-text-align-center\"><em>U.S. Deficit Tracker \u2013 <a href=\"https:\/\/bipartisanpolicy.org\/report\/deficit-tracker\/\" target=\"_blank\" rel=\"noreferrer noopener\">Bipartisan Policy Center<\/a><\/em><\/p>\n<p><span data-preserver-spaces=\"true\">Of course, just because the budget is out of whack doesn\u2019t make it obvious how to address such an imbalance. What gets cut? How much? Should taxes be raised? Which ones and by what amount? Obviously, there\u2019s a lot to debate.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">At issue here are\u00a0<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.pbs.org\/newshour\/politics\/debt-ceiling-anxiety-remains-ahead-of-meeting-between-biden-and-congressional-leaders\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">a variety of issues<\/span><\/a><span data-preserver-spaces=\"true\">, including clawing back unspent Covid-19 money (about $30 billion), future budget caps, regulations on energy development, and whether to increase work requirements for those receiving food stamps, Medicaid and\/or TANF (Temporary Assistance for Needy Families). In other words, there are a lot of things on the table to discuss.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">With so much on the table, it could be difficult to work out a deal. Thus, the deadline might get missed, which is what all the fuss is about. If the deadline is missed,\u00a0<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.brookings.edu\/2023\/04\/24\/whats-the-difference-between-a-government-shutdown-and-a-failure-to-raise-the-debt-ceiling\/\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">the Treasury would keep making payments<\/span><\/a><span data-preserver-spaces=\"true\">\u00a0despite a shutdown until it runs out of money. If it did run out without some sort of resolution, then the U.S. federal government would default on its debt for the first time in its history (or at least officially, some argue it\u00a0<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/thehill.com\/opinion\/finance\/575722-the-us-has-never-defaulted-on-its-debt-except-the-four-times-it-did\/\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">has effectively defaulted in the past<\/span><\/a><span data-preserver-spaces=\"true\">).\u00a0<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">And while a shutdown wouldn\u2019t be particularly bad, a default would be catastrophic.<\/span><\/p>\n<h2><span data-preserver-spaces=\"true\">Should We Worry About a Potential Default?<\/span><\/h2>\n<p><span data-preserver-spaces=\"true\">The last article I wrote was on\u00a0<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.biggerpockets.com\/blog\/how-the-ancient-greeks-can-help-you-invest\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">Stoicism<\/span><\/a><span data-preserver-spaces=\"true\">\u00a0and the importance of not letting things you cannot control affect your well-being. And presuming you aren\u2019t a member of Congress, this is definitely one of those things you cannot control.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">But further, the odds of an outright default are extremely negligible. I don\u2019t have a lot of faith in politicians, but the sheer insanity of failing to pay our debt payments when the money is available to do so would be incomprehensible.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">It needs to be remembered that this is not an either\/or issue. The government will not either come to an agreement or fail to. There are plenty of makeshift and temporary measures that can be (rather easily) taken to avoid a default, even if they don\u2019t avoid a shutdown. This would include passing a temporary extension on the debt ceiling deadline, something that has been done before.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">If a default were to happen, it would cause an array of very serious problems for real estate investors. There would be a run on U.S. banks, and credit would dry up. So, getting a bank loan would be close to impossible.\u00a0<\/span><em><span data-preserver-spaces=\"true\">Yahoo!<\/span><\/em><span data-preserver-spaces=\"true\">\u00a0predicts mortgage payments would go up\u00a0<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/finance.yahoo.com\/news\/mortgage-payments-could-surge-22-114300184.html?guccounter=1\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">a cool 22%<\/span><\/a><span data-preserver-spaces=\"true\">! Lines of credit would probably be called, so investors would lose access to those. Thereby, real estate prices would likely plunge. The economy would plunge into a recession, and many tenants would lose their jobs, causing delinquency to spike. Contractors and vendors would go out of business, making it difficult to find people to do work even if you had the money to pay.\u00a0\u00a0<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">As far as how to prepare, well, if you haven\u2019t already built your underground bunker and stocked a year\u2019s supply of food, there\u2019s not a lot you can do at this point other than take out any money you have in the stock market.\u00a0<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">In short, it would be very bad for real estate investors, and having my predictions from this article thrown in my face would be the least of my problems.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">That being said, it\u2019s not going to happen. After all, these are the steps we\u2019d have to go through to get there:<\/span><\/p>\n<ol>\n<li><span data-preserver-spaces=\"true\">No deal can be reached by June 1.<\/span><\/li>\n<li><span data-preserver-spaces=\"true\">No deal can be reached before the Treasury runs out of money to make interest payments.<\/span><\/li>\n<li><span data-preserver-spaces=\"true\">No extension nor temporary deal is made to pay for interest payments.<\/span><\/li>\n<li><span data-preserver-spaces=\"true\">Once the financial markets begin to panic after a payment is missed, Congress doesn\u2019t immediately change course and make its debt payments.<\/span><\/li>\n<\/ol>\n<p><span data-preserver-spaces=\"true\">I would say the odds of 1) and 2) are at least possible, albeit unlikely. 3) is basically impossible, and 4) is downright unfathomable.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">And that\u2019s all assuming the Biden Administration doesn\u2019t pull\u00a0<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.washingtonpost.com\/business\/2023\/05\/03\/debt-ceiling-scenarios\/\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">an end run around Congress<\/span><\/a><span data-preserver-spaces=\"true\">\u00a0through some legal chicanery, which they could potentially do if the debt ceiling deadline passes and default looms near.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">Yes, it\u2019s never wise to bet your money on the wisdom of politicians, but I do expect them to intentionally breathe and eat and sleep, and avoiding a default when there\u2019s money to pay isn\u2019t asking much more than the previously mentioned expectations.<\/span><\/p>\n<h2><span data-preserver-spaces=\"true\">Conclusion<\/span><\/h2>\n<p><span data-preserver-spaces=\"true\">MSCI puts the odds of default\u00a0<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.cnn.com\/2023\/03\/31\/economy\/default-debt-ceiling\/index.html\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">at 2%<\/span><\/a><span data-preserver-spaces=\"true\">, with its head of portfolio management research, Andy Sparks, stating that the probability \u201cis small, but it\u2019s not zero.\u201d<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">That kind of reminds me of this meme.<\/span><\/p>\n<figure class=\"wp-block-image size-full\"><picture decoding=\"async\" class=\"wp-image-152950 sp-no-webp\" title=\"A U.S. Default Could Be Catastrophic For Real Estate Investors\u2014Here's What You Need To Know 3\"><source srcset=\"https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2023\/05\/image2-3.webp 640w,https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2023\/05\/image2-3-245x300.webp 245w\" sizes=\"(max-width: 640px) 100vw, 640px\" type=\"image\/webp\"><source srcset=\"https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2023\/05\/image2-3.jpg 640w, https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2023\/05\/image2-3-245x300.jpg 245w\" sizes=\"(max-width: 640px) 100vw, 640px\" type=\"image\/jpeg\"><img loading=\"lazy\" src=\"https:\/\/bpimg.twic.pics\/https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2023\/05\/image2-3.jpg?twic=v1\/cover=640:785\/max=1000\/output=preview\" decoding=\"async\" class=\"wp-image-152950 sp-no-webp\" title=\"A U.S. Default Could Be Catastrophic For Real Estate Investors\u2014Here's What You Need To Know 3\" alt=\"meme about duck\" height=\"785\" width=\"640\" data-twic-src=\"\/blog\/wp-content\/uploads\/2023\/05\/image2-3.jpg\" data-twic-src-transform=\"cover=640:785\/*\/max=1000\"\/><noscript><img decoding=\"async\" src=\"https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2023\/05\/image2-3.jpg\" alt=\"meme about duck\"\/><\/noscript><\/source><\/source><\/picture><\/figure>\n<p><span data-preserver-spaces=\"true\">Yes, the prospect of a potential default makes for great headlines, but it\u2019s extraordinarily unlikely.\u00a0<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">But moreover, there is little the average person can do to affect it, and it\u2019s too late to make any broad adjustments to such a dire scenario.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">In general, however, we are sailing through volatile economic waters even if a government default is not in the cards. As\u00a0<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.biggerpockets.com\/blog\/investing-in-a-volatile-economy\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">I wrote before<\/span><\/a><span data-preserver-spaces=\"true\">,\u00a0<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">\u201c[The] best investors often do the best during recessions or volatile economies. They don\u2019t do so, however, by sitting on the sidelines. Instead, they keep their [cash] reserves high, adjust to the environment, sharpen their pencils, and continue\u2026\u201d<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">There will be economic troubles ahead. Be cautious and conservative, but don\u2019t stop and merely hunker down because of a few doomsaying headlines.\u00a0<\/span><\/p>\n<div id=\"hero-block_62ee867235a1c\" class=\"first:mt-0 hero-block    has-background has-slate-300-background-color has-text-color has-slate-800-color\">\n<div class=\"gap-10 lg:gap-20 flex flex-wrap lg:flex-nowrap max-w-screen-xl mx-auto px-4 relative lg:items-center \">\n<div class=\"relative z-30 lg:w-2\/3 \">\n<main class=\"py-4\"><\/p>\n<p class=\"has-theme-slate-color has-text-color has-large-font-size\"><strong>Close MORE deals in LESS time for LESS money <\/strong><\/p>\n<p class=\"my-3 md:my-5 lg:my-8 has-theme-slate-color has-text-color\" style=\"font-size:16px\"><em>Wealth without Cash<\/em> will fully prepare you to find off-market leads, uncover sellers\u2019 motivations, negotiate with confidence, close more deals, build a team, and much more.\u00a0This book by Pace Morby has everything you need to become a millionaire investor without utilizing your own capital.<\/p>\n<p><\/main>\n<\/div>\n<div class=\"lg:w-1\/3 first:mt-0 relative h-full lg:flex lg:items-center\">\n<picture decoding=\"async\" class=\"object-cover w-full relative z-20 my-0  rounded-md hidden lg:block sp-no-webp\" title=\"A U.S. Default Could Be Catastrophic For Real Estate Investors\u2014Here's What You Need To Know 4\"><source srcset=\"https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2023\/04\/WWC_Cover-Flat-1-scaled.webp \" type=\"image\/webp\"><source srcset=\"https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2023\/04\/WWC_Cover-Flat-1-scaled.jpg\" type=\"image\/jpeg\"><img src=\"https:\/\/bpimg.twic.pics\/https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2023\/04\/WWC_Cover-Flat-1-scaled.jpg?twic=v1\/cover=1707:2560\/max=1000\/output=preview\" decoding=\"async\" class=\"object-cover w-full relative z-20 my-0  rounded-md hidden lg:block sp-no-webp\" title=\"A U.S. Default Could Be Catastrophic For Real Estate Investors\u2014Here's What You Need To Know 4\" alt=\"WWC Cover Flat 1 scaled\" data-twic-src=\"\/blog\/wp-content\/uploads\/2023\/04\/WWC_Cover-Flat-1-scaled.jpg\" data-twic-src-transform=\"cover=1707:2560\/*\/max=1000\"\/><noscript><img decoding=\"async\" src=\"https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2023\/04\/WWC_Cover-Flat-1-scaled.jpg\" alt=\"WWC Cover Flat 1 scaled\"\/><\/noscript><\/source><\/source><\/picture>\n<\/div>\n<\/div>\n<\/div>\n<p class=\"italic\"><b>Note By BiggerPockets:<\/b> These are opinions written by the author and do not necessarily represent the opinions of BiggerPockets.<\/p>\n<\/div>\n<p><br \/>\n<br \/><a href=\"https:\/\/www.biggerpockets.com\/blog\/a-us-default-could-be-catastrophic-for-real-estate-investors\">Source link <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>In this article The financial press is abuzz again about the debt ceiling deadline and the risks of another government shutdown and perhaps a catastrophic default on U.S. debt if an agreement cannot be reached. The ceiling (currently sitting at\u00a0$31.4 trillion) is set to be hit on June 1. \u00a0The Washington Post\u00a0is particularly apoplectic, \u201cFederal [&hellip;]<\/p>\n","protected":false},"author":5,"featured_media":7691,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"default","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","ast-disable-related-posts":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"fifu_image_url":"https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2023\/05\/debt-ceiling-1024x517.jpg","fifu_image_alt":"","footnotes":""},"categories":[9],"tags":[],"class_list":["post-7690","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-blog"],"_links":{"self":[{"href":"https:\/\/imsfund.com\/index.php\/wp-json\/wp\/v2\/posts\/7690","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/imsfund.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/imsfund.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/imsfund.com\/index.php\/wp-json\/wp\/v2\/users\/5"}],"replies":[{"embeddable":true,"href":"https:\/\/imsfund.com\/index.php\/wp-json\/wp\/v2\/comments?post=7690"}],"version-history":[{"count":1,"href":"https:\/\/imsfund.com\/index.php\/wp-json\/wp\/v2\/posts\/7690\/revisions"}],"predecessor-version":[{"id":7692,"href":"https:\/\/imsfund.com\/index.php\/wp-json\/wp\/v2\/posts\/7690\/revisions\/7692"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/imsfund.com\/index.php\/wp-json\/wp\/v2\/media\/7691"}],"wp:attachment":[{"href":"https:\/\/imsfund.com\/index.php\/wp-json\/wp\/v2\/media?parent=7690"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/imsfund.com\/index.php\/wp-json\/wp\/v2\/categories?post=7690"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/imsfund.com\/index.php\/wp-json\/wp\/v2\/tags?post=7690"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}