The Washington Post said:
The markets shuddered slightly as the debt ceiling neared. The yield on short-term Treasuries rose tenfold. Fidelity Investments sold off its short-term government debt.
But the shudder was slight -- and, on Friday, there was a relief rally in equities on the news that House Republicans might agree to suspend the debt ceiling for six weeks in order to spend more time with their shutdown.
The markets’ faith in the U.S. is long-standing and not easily dislodged. The dollar has been the world’s reserve currency for decades, with the foreigners who hoard our cash providing essentially interest-free loans to the U.S. Treasury. The global appetite for Treasury bills produces similar gains, with purchasers -- including foreign governments buying in bulk -- lending the U.S. government money at minimal, even effectively negative, rates. The result is a huge economic advantage for the United States.