Washington’s fiscal squabbling could have a major economic impact on New Yorkers – and worry is growing as the debt deadline looms.

From seniors worried they won’t be getting their Social Security checks, to investors bracing for more stock market gyrations, the mood is growing grim.

“I am concerned for my life and for my friends,” said Leatrice David, a semiretired senior who lives in midtown Manhattan. “I am not well. I need these funds.”

“My Social Security money was placed in a trust fund. Now our President is saying we may not get our checks. Where is the money?”

If lawmakers don’t raise the debt ceiling by the Aug. 2 deadline, the U.S. faces a potential default on its loans – and the Treasury won’t have enough money to pay off all of its bills, including Social Security, Medicare, defense spending and federal salaries.

If Congress comes up with just a short-term fix, the nation may lose its AAA credit rating. Continue Reading