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The 112th Congress: Debt ceiling edition

  • Thread starter Thread starter Priceless
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Re: The 112th Congress: Debt ceiling edition

If we default, it's going to be costly with any interest rate hike... Treasury needs to rollover $40 or 400billion in few months, I guess Bernanke could buy em up under QE3. And I'm not sure why the 3 credit agency gets so much credit after the MBS mess. All those companies should have been investigated and probably shut down for kick backs and malpractice.

So what happens to the payroll tax "holiday" and cut that Obama instigated. That's 36% of treasury tax revenue (and he cut it by 25%) and will Republicans go along with expiration of payroll tax cut or will they fight it ala Bush tax cuts. Or it doesn't matter to them since it doesn't affect the rich folks much.

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Re: The 112th Congress: Debt ceiling edition

A GOP source to ABC News:
Asian markets? They are on their own.
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The Nikkei opens in less than 4 hours. Should be interesting.
 
Re: The 112th Congress: Debt ceiling edition

Self serving observation: If interest rates go up, won't CD rates go up?
 
Re: The 112th Congress: Debt ceiling edition

Handyman said:
Scooby,

Minnesota compromised...Dayton sold out his entire base to cut a deal that sucks so hard everyone hates it. He got sick of hearing how the shutdown is his fault and he screwed over half the DFL. (and well all the teachers and school districts)
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Not before the shutdown they didn't. My point was we won't see anything happen here until after the date has passed. And yes the Democrats lost again. They always lose. Everyone knows you can't raise taxes on job creators.
 
Re: The 112th Congress: Debt ceiling edition

Tundra said:
If we default, it's going to be costly with any interest rate hike... Treasury needs to rollover $40 or 400billion in few months, I guess Bernanke could buy em up under QE3. And I'm not sure why the 3 credit agency gets so much credit after the MBS mess. All those companies should have been investigated and probably shut down for kick backs and malpractice.
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I think that a number of fixed income funds can only invest in the highest of high quality bonds and should the US government debt be downgraded they will be required to sell to reduce their holdings. The problem is that they are required to sell AT ANY PRICE, which means that they will flood the market and the price could potentially crater. Which could potentially drive more people to sell, at which point prices fall and panic sets in. Just ugly all around. The upside is that the Fed would be able to buy the debt at a fraction of the face value during QE3.

You are correct, Obama did push through the payroll tax cut to compensate for the Making Work Pay (MWP) tax credit (from the stimulus) which were to expire at the end of 2011. Actually, it was better for the higher income workers since the 2% of their payroll taxes are greater then the $400 of the MWP credit that everyone received unless you made enough money that the MWP credit was phased out.

Regardless, the blame for the current situation isn't limited to one person or party, EVERY politician (or both parties) is at least partially responsible for this giant ****ing mess we're now in.
 
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Re: The 112th Congress: Debt ceiling edition

Wheeee

U.S. stock futures fell, indicating the Standard & Poor’s 500 Index will slump after rallying within 1.4 percent of a three-year high, as the dollar dropped and gold climbed as failure to raise the federal debt limit intensified concern of a default.

S&P 500 futures expiring in September declined 1 percent to 1,327.60 at 7:26 a.m. in Tokyo, and Dow Jones Industrial Average futures lost 119 points, or 0.9 percent, to 12,502. The dollar slipped 0.8 percent versus the Swiss franc, 0.3 percent against the yen and 0.2 percent versus the euro. Gold futures added as much as 1 percent to a record $1,617.70 an ounce.
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Re: The 112th Congress: Debt ceiling edition

Stocks in Tokyo opened lower Monday, the first reaction in major Asian markets after congressional leaders and the Obama administration failed to reach agreement on a deal to raise the U.S. debt limit. The Nikkei 225 was down 0.6% to 10,069 about 15 minutes after the start of trading.
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I'm surprised it took that long...

Edit: It occurs to me that the same people who are telling us not to worry, that the impact of a default won't be that bad, are largely the same people who warned us that the stock market would tank if the health care bill passed. I'm going to take their advice with a few billion grains of salt...
 
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Re: The 112th Congress: Debt ceiling edition

Harry Reid just blinked.

Reid statement says he's preparing bill will $2.7T in cuts, debt ceiling increase and no revenues.
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Thanks Harry! At least you could give us the courtesy of a reach-around while you **** us in the ***.
 
Re: The 112th Congress: Debt ceiling edition

Priceless said:
I'm surprised it took that long...

Edit: It occurs to me that the same people who are telling us not to worry, that the impact of a default won't be that bad, are largely the same people who warned us that the stock market would tank if the health care bill passed. I'm going to take their advice with a few billion grains of salt...
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0.6% is not a catastrophic event. if it hits 6% today (nite), then we're talking.
 
Re: The 112th Congress: Debt ceiling edition

The Reid statement:

"Tonight, talks broke down over Republicans' continued insistence on a short-term raise of the debt ceiling, which is something that President Obama, Leader Pelosi and I have been clear we would not support. A short-term extension would not provide the certainty the markets are looking for, and risks many of the same dire economic consequences that would be triggered by default itself. Speaker Boehner's plan, no matter how he tries to dress it up, is simply a short-term plan, and is therefore a non-starter in the Senate and with the President.

"In an effort to reach a bipartisan compromise, we are putting together a $2.7 trillion deficit reduction package that meets Republicans' two major criteria: it will include enough spending cuts to meet or exceed the amount of a debt ceiling raise through the end of 2012, and it will not include revenues. We hope Speaker Boehner will abandon his 'my way or the highway' approach, and join us in forging a bipartisan compromise along these lines."
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A bipartisan compromise is "whatever the GOP wants" apparently. Why even have two parties? Harry, he doesn't have to adondon his "my way or the highway" approach, you just gave him his way. If you were just going to cave, why not do it two months ago and save us all a lot of trouble?
 
Re: The 112th Congress: Debt ceiling edition

Priceless said:
The Reid statement:



A bipartisan compromise is "whatever the GOP wants" apparently. Why even have two parties? Harry, he doesn't have to adondon his "my way or the highway" approach, you just gave him his way. If you were just going to cave, why not do it two months ago and save us all a lot of trouble?
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Politics of Brinksmanship?????
 
Re: The 112th Congress: Debt ceiling edition

Priceless said:
A bipartisan compromise is "whatever the GOP wants" apparently. Why even have two parties? Harry, he doesn't have to adondon his "my way or the highway" approach, you just gave him his way. If you were just going to cave, why not do it two months ago and save us all a lot of trouble?
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I'll ask again: why should the GOP ever compromise? The Dems have proven that it's completely unnecessary. :D

Related question: has Reid been castrated? He sure acts like he has been.
 
Re: The 112th Congress: Debt ceiling edition

So if the Dems are offering $2.7T tonight, how much are the Republicans going to demand when they announce their plan tomorrow? $4T? $5T?
 
Re: The 112th Congress: Debt ceiling edition

Privatize social security and medicare while ending the capital gains tax and requiring a 9/10 majority of both houses to raise it in the future. :p
 
Re: The 112th Congress: Debt ceiling edition

Bakunin said:
Privatize social security and medicare while ending the capital gains tax and requiring a 9/10 majority of both houses to raise it in the future. :p
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3/5th votes for blacks. Hardcore originalism!
 
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