Funny Business
MOST SHARED
- Homes Prices Drop 2% to Post-Crisis Lows: Case-Shiller
- Consumer Confidence Has Biggest Drop in Eight Months
- Stocks Advance, Led by Energy; FB Down 5%
- Spain to Go to Market to Fund Banks, Regions
- State Fund Rejects ‘Unaccountable’ Chesapeake Board
- Greece to Leave Euro Zone on June 18: Wealth Manager
- Auto Sales to Really Take Off This Summer?
- European Firms Plan for Greek Unrest and Euro Exit
- JPMorgan Debacle Points to Regulatory Incompetence, Corruption
- June Could Be Turning Point for Markets, Economy
- Goldman Investment Shines Light on Solar Power
- Facebook Options Soar on First Day
- Home Prices Hit Lows, But 'We See Signs of Hope'
- Auto Sales to Really Take Off This Summer?
- JPMorgan Debacle Points to Regulatory Incompetence, Corruption
- Are You Ready for Facebook Options?
- Option Bulls Dig Into Ivanhoe Near Lows
- Facebook: The Song — Yes, We're Serious
- A New Look at the ‘New Poor’
- Home Prices Hit Fresh Lows, But 'We See Signs of Hope'
- High Tech Worker Shortage: Has Anything Changed?
- Facebook Stock Falls Below $30 for First Time
- JPMorgan Sells Good Assets to Offset 'London Whale'
- Big Shift in ECB Balance Sheet a Sign of Banking Stress?
- Spain to Go to Market to Fund Banks, Regions
- Leaving Euro a ‘Disaster’ for Greece: Former Minister
- Why a Strong Dollar Doesn't Mean a Cheap Europe Trip
- Cramer's Top Dividend Plays
RSS FEED
Don't Panic — The Debt Ceiling Explained
CNBC Correspondent
I know I’m supposed to be all freaked out about the nation reaching its debt limit and our credit being downgraded and we’ll stop paying some bills.
![]() |
Source: Allied Artists Pictures Hey, I'm from California you know, land of Carmageddon and all the other 'geddons, this is no time to panic. |
Maybe I’m being silly, but I’ll start to freak out when I flip on the lightswitch and there’s no electricity, when bread starts disappearing from store shelves, when I can’t get clean (ish) water out of my tap. Yeah, I hear the stories that credit will tighten up, become more expensive, blah blah blah.
Um, as I may have mentioned, I live in California. Credit is already tight. Things are already more expensive.
In fact, debt ceiling politics are old hat in Hollywood. Just watch this clip from “The West Wing”, Hollywood’s version of Washington, where Martin Sheen is President.
The clip, from 2004, explains exactly what is going on right now. We learn that if the debt ceiling isn’t raised, we’ll see “The immediate collapse of the U.S. economy, followed by Japan sinking into the sea, followed by a worldwide Depression the likes of which no mortal can imagine, followed by Week 2.” And when asked if “this debt ceiling thing” is routine or the end of the world, the reply is, “Both”.
But the lights still work.








