Bohemia, NY (PRWEB) October 08, 2013
Lawrence Teicher, founder of CFO Consulting Services responds to an article published by the Los Angeles Times on October 2nd, which details the potential affect of the U.S. government defaulting on its debt and how it could harm the job market.
According to the Los Angeles Times article titled “Finance executives warn Washington not to risk a government default,” the U.S. government could be headed toward default if it does not make a decision to raise the $16.7-trillion debt limit by October 17th. Failure to reach a compromise would cause the first-ever federal default and “severe economic harm.”
The article also says a default could negatively affect the job market and possibly trigger another recession. To help urge politicians to make a decision, worried Wall Street executives from JP Morgan Chase, Bank of America and other financing corporations ventured down to Washington.
“There's no debate that the seriousness of the U.S. not paying its debts, whether it's Social Security checks, small business loans … all the way up to the Treasury notes and bills, is the most serious thing we have,” says Brian Moynihan, chief executive of Bank of America.
Lawrence Teicher, founder of CFO Consulting Services, affirms that a governmental default would further cripple the already unstable economy. “Time is ticking,” he says. “There’s a possibility Congress might not reach a decision by the October 17th deadline. Many non-governmental companies and agencies don't think this could affect them, but it can. I advise all companies and CFOs to prepare for an economic downturn if the government defaults. With this being said, our dysfunctional government must also ultimately reduce government spending and the deficit. We are saddling our children with an unsustainable debt load that imperils the quality of life for future generations.”
CFO Consulting Services, LLC provides outsourced, part-time CFO services on an as-needed basis to both small and mid-sized businesses located in the NY metropolitan region. Founded by Long Island CPA and financial expert Lawrence Teicher, CFO Consulting Services follows four main principles: independence, objectivity, competence and confidentiality. These core values have led its clients to achieve lasting success in their businesses.