Tension over the debt ceiling has been mounting in recent weeks as the U.S. inches steadily closer to the date that it will default on its debts, an event that would spell global economic catastrophe.
A deal was reached between President Joe Biden and House Speaker Kevin McCarthy over the weekend, but it now must be passed by Congress before the June 5 deadline in order to avoid a default.
Famed "Shark Tank" investor Kevin O'Leary thinks the deal is a good one, and said he's confident that it will pass.
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"This deal has to get voted and it will tonight. We're at the cusp of defaulting, which would be a very bad deal," O'Leary said on Fox News. "And everybody knows you have to give something up. This deal has pain on both sides of the aisle which is how you know it's going to work."
He cited several things in the deal that he likes, from the approval of a new pipeline to better policy on permitting.
"It's a good thing for markets, for America, for investors, for business," he said. "I like what I'm seeing here."
O'Leary explained that if the deal does not pass, the pain of a default would be measurable within hours.
"The cost of maintaining our debt would skyrocket. The government wouldn't be able to service any functions at all," he said. "It would be a catastrophe and both sides of the aisle know that."
He added, though, that he just doesn't think a default is realistic.
"The idea that the American government would default is a fiction. It would never happen," O'Leary said. "And it would be irresponsible for any politician to use it to get airtime."
"Everybody hates this deal and that's why it's going to happen."
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