tony de wonderful

Still not sorted out.

The Market needs the US to take on more debt or they crash the system.

From what I've read though the whole thing is just silly theater because:

1) The White House could just do it anyway and let Congress chase them in the courts.

2) The US Treasury can issue platinum coins of any denomination.

3) All US debt is in USD which it can print as much as it wants of.

Anyone worried though? Alloy?

TelBoy

It's only a worry if they don't resolve it by Tuesday. Most people, myself included, don't think they'll be stupid enough not to avert a credit downgrade, but Obama and Boehner are both stubborn and have a lot to lose politically if they are considered to have conceded too much. Time will tell.

tony de wonderful

To be fair it's all Obama's fault because he spent the money on Pork Barrels and welfare/health care to his client voters, but he's making out that the right are being an obstacle and should just give him the money with no strings.

GlesgaKiss

The bond market shows how little a 'default' is expected. Doesn't mean it absolutely won't happen, but certainly hardly anyone seems to think it likely.

It's just too much to believe that they won't just keep chugging along as usual, probably spending quite a bit more money they don't have. Common sense, on the other hand, would wonder about the logic of needing to increase debt to pay off debt, but it's just the way of the world I suppose.

tony de wonderful

I think the market is too savy to see this as more than amateur dramatics.

Dr Hu

I'd buy more Pork Bellies and Frozen Orange Juice.....

bigsinky

come on lad behave yerself ffs !!!!

alloy

100bps addition on financing their debt wipes 1.8% a year off their GDP.....Euro situation is a forceful one, US has a route out....would you cut your own ***** off?......are America likely to do so?

PaulC72

will they not just raise the ceiling more lol and keep going up.

FlightMan