Judy Chu: “In less than 2 weeks, on August 2, we must raise the debt limit or the American Government will go into financial…”

“In less than 2 weeks, on August 2, we must raise the debt limit or the American Government will go into financial default. If we don't, it will be a disaster for the economy, and real American families will pay the price. That's why for almost 95 years we have kept our promises and paid our bills. Congress has voted to avoid economic default nearly 100 times since 1917 because it was the right thing to do. The debt limit was raised 17 times under Ronald Reagan, four times under Bill Clinton and seven times under George W. Bush; but now Republicans are shying away from their duty, spreading misinformation about the serious threat we are facing, saying there will be no impact on the average American and that it will not hurt our economy. But that's not true. Let me tell you why. If we default on our bills, the interest on all our loans would skyrocket just as your interest rate would go up if you missed a credit card payment. This means disaster for all American families. The median 30-year home loan would increase by almost $20,000, or 10 percent. This would hurt an already struggling housing market, pushing home sale prices down and potentially leaving more borrowers underwater. If we default on our bills, the stock market could plunge, and Americans in their fifties would lose almost $9,000 immediately from the typical 401(k). The S&P 500 could lose 6.3 percent in value in just 3 short months.…”