``If the debt limit isn't raised or if investors fear the nation is headed for default, bond interest rates could rise "if investors think there's a higher probability they won't get repaid on time," said Ben Ritz, director of the Progressive Policy Institute's Center for Funding America's Future. "Higher interest rates stemming from fear of a default -- or an actual default -- will reduce the value of outstanding bonds. That reduces the value of banks's capital reserves, makes it harder to cover deposits and you're just more at risk of a Silicon Valley Bank-like situation," Ritz said. ''

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