How a national default could affect stocks, mortgage rates

(The Hill) – If the White House and House Republicans fail to raise the debt ceiling and the U.S. defaults on its national debt for the first time ever, the economic consequences for Americans will be wide-ranging and long-lasting. 

Social Security checks could be held up, government salaries and contracts could be frozen, Medicare reimbursements to doctors and hospitals could be paused, markets for stocks and bonds will almost certainly take a dive, and financing levels for basic private purchases could skyrocket.

The good news is that aside from this, the U.S. economy's underlying health is in pretty good shape. Employment levels have refused to budge from near record highs and American consumers continue to spend money on things they want to buy. 

Wage increases over the pandemic have been largely eaten up by inflation, but high churn in the labor market has given employees some degree of freedom and independence from their employers. Corporate profits are still way above historical levels.

Inflation has also been fall...