Debt deal brings financial relief - 21 News Now, More Local News for Youngstown, Ohio -

Debt deal brings financial relief

Posted: Updated:

YOUNGSTOWN, Ohio - There's relief tonight in the financial and economic sectors.

Stocks surged on Wall Street this afternoon after Senate leaders reached a deal that could avoid U.S. default.  The Senate passed the bill 81-18, and sent it to the House, which is expected to take up the bill tonight.

The federal government's bills are piling up, $25 billion in Social Security benefits, $18 billion in Medicare reimbursements, and $12 billion in military pay and veteran's benefits.

But it appears those bills will be paid, now that there's an 11th hour deal with bi-partisan support to raise the debt ceiling, and end the partial government shutdown.

It still has to be approved in both the house and senate.

Nick Demetrios with Hill, Barth & King says, "They expect it to pass through with little resistance just because if we continue to slow, and we end up having to shut down there could be a lot of negative consequences to that."

Despite political differences it seems lawmakers who were divided, were forced to come together, and avoid what could have amounted to an economic disaster.

Dr. Paul Sracic is a YSU Professor and Chairman of the Political Science Department, "You could see things like social security checks being affected, if you don't have the debt limit raised. Unlike the shutdown, that's one of the things everyone's afraid of, because best case scenario is, you don't default on your debt. But you make massive cuts."

"Long term effects it could bring on recession, it could bring on higher unemployment, it could bring on higher interest rates, all those nasty things. The value of the dollar could decline in foreign markets, and those are all things that they've wanted to avoid," Demetrios said.

The White House is urging quick congressional approval, so President Barack Obama can give the deal his signature.

The agreement would reopen the government through January 15th and increase the nation's borrowing authority through February 7th, and that's likely when we'll be going through this all over again.

Dr. Sracic says, "This is the sequester on steroids if you don't have the debt limit raised, but it appears we've dodged that bullet."

  • SpotlightSpotlightMore>>

  • Updated

    The Scrappers host “POPS at the Ballpark” featuring the Youngstown Symphony Orchestra

    The Scrappers host “POPS at the Ballpark” featuring the Youngstown Symphony Orchestra

    Tuesday, April 15 2014 2:04 PM EDT2014-04-15 18:04:57 GMT
    NILES, Ohio – The Mahoning Valley Scrappers and the Youngstown Symphony Orchestra are excited to host one of the Valley's premiere summer events, POPS at the Ballpark,More >>
    NILES, Ohio – The Mahoning Valley Scrappers and the Youngstown Symphony Orchestra are excited to host one of the Valley's premiere summer events, POPS at the Ballpark, presented by Stanley E. Shearer with Northwestern Mutual and 21 WFMJ on Saturday, August 23, 2014 at Eastwood Field.More >>
  • Around the WebMore>>

  • 2 boaters found dead in Lake Erie; 2 more missing

    2 boaters found dead in Lake Erie; 2 more missing

    Thursday, April 17 2014 3:49 PM EDT2014-04-17 19:49:32 GMT
    TOLEDO, Ohio (AP) - Authorities say the bodies of two of four missing boaters in western Lake Erie have been recovered off the Ohio shoreline. Officials say they recovered the bodies of two females Thursday.More >>
    TOLEDO, Ohio (AP) - Authorities say the bodies of two of four missing boaters in western Lake Erie have been recovered off the Ohio shoreline. Officials say they recovered the bodies of two females Thursday.More >>
  • Boston Marathon organizers confident of safe race

    Boston Marathon organizers confident of safe race

    Police stepped up patrols near the Boston Marathon finish line after a masked man walked in the street with a rice cooker in his backpack only hours after the city marked the anniversary of last year's deadly...More >>
    The arrest of a man with a rice cooker in his backpack near the Boston Marathon finish line led police to step up patrols Wednesday, while organizers sought to assure the city and runners of a safe race next week.More >>
  • Low of 19 degrees in Toledo breaks 139-year record

    Low of 19 degrees in Toledo breaks 139-year record

    Wednesday, April 16 2014 6:34 PM EDT2014-04-16 22:34:39 GMT
    TOLEDO, Ohio (AP) - Winter temperatures are refusing to go away in northwestern Ohio. The thermometer dropped to 19 degrees in Toledo Wednesday morning, breaking a 139-year-old record for the same dateMore >>
    TOLEDO, Ohio (AP) - Winter temperatures are refusing to go away in northwestern Ohio. The thermometer dropped to 19 degrees in Toledo Wednesday morning, breaking a 139-year-old record for the same dateMore >>
Powered by WorldNow
All content © Copyright 2000 - 2014 Worldnow and WFMJ. All Rights Reserved. For more information on this site, please read our Privacy Policy and Terms