Markets Tumbling All Around The World - Economy Set To Slow - Debt Ceiling Crisis Grows

U.S. futures are set to open sharply lower this morning after a weekend of heightened debt ceiling rhetoric.

Not only was there absolutely no progress on any kind of "deal" but on the Sunday shows, John Boehner insisted that the U.S. was on the "path" to default if Obama refused to negotiate on the debt ceiling, which is something Obama has absolutely refused to do.

Now Boehner's rhetoric, to some extent, might be just red meat for his right-wing base, but the market doesn't like this kind of language.

U.S. futures are set to open down to the tune of 1%.

And it's not just in the U.S. Japan fell 1.2%. Germany is off 1.1%. France is off 1.2%. Basically, global selloff.

Meanwhile, even before the debt ceiling is hit, the economic impact starts to build, as Bank of America has slashed its GDP forecast for both this quarter and the next one.