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The debt deal that President Barack Obama announced in Washington on Sunday appeared to neutralize the immediate U.S. default threat.
At the same time, investors are looking for safe havens like Treasury bonds, despite the looming default threat.
If, as most observers think likely, the package is signed into law today, the default threat wilol be lifted.
By most estimates, the government shutdown and default threat have trimmed about half a percentage point from growth in this year's fourth quarter.
Reuters reported on May 31 that China's regulators planned to shift 2 trillion to 3 trillion renminbi of debt off of local governments to ease the default threat.
The Cyprus experience suggests that, with the credibility of the government's default threat in tatters, the EU is likely to force Greece to stay in the euro and put it through an American-style municipal bankruptcy, like that of Detroit.
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Bond investors demanded sharply higher interest rates on short-term government debt during the debt ceiling impasse, with some big investors saying they expect a premium in the future to compensate for the risk of new default threats.
This is where the Spanish government in Madrid might just have something to say about the debt default threats being made by the current leaders of the Scottish government.
While countries like Belize, Iran, Pakistan and Egypt face coups, revolutions, crippling debt, international sanctions, civil war and default, the threat of a government shutdown for them has never been a real one.
The German finance ministry later denied that it was working on bail-out scenarios.The panic revealed another gap in the euro area's fiscal set-up: a process for dealing with a sovereign default, or the threat of one.
Jo Goodall, the lead investigator in the operation for the National Crime Agency, said: "Cyber-crime by default is a threat that crosses borders.
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CEO of Professional Science Editing for Scientists @ prosciediting.com