Let the nation default?

[Katzndogz]

Having sold everything yesterday, I find it mesmerizing to watch the DOW in a freefall this morning.

I almost dislocated my arm, patting myself on the back a few minutes ago....

Interest rates are climbing rapidly now. The market is slowly waking up to the idiots in the capital.

obama told the markets a couple of days ago that they should be worried. obama now needs a market crash. It's in his plan.

 

[KissMy]

Having sold everything yesterday, I find it mesmerizing to watch the DOW in a freefall this morning.

I almost dislocated my arm, patting myself on the back a few minutes ago....

I am buying. when selling panic begins, its the time to buy.

so you sold and now have cash, do you think that is going to appreciate when the govt is borrowing 40 cents of every dollar it spends?

Markets will not rebound in a high interest rate environment. Cash is king. High interest bonds is where the money will flow. The economy will slow down.

 

[Flopper]

Having sold everything yesterday, I find it mesmerizing to watch the DOW in a freefall this morning.

I almost dislocated my arm, patting myself on the back a few minutes ago....

Interest rates are climbing rapidly now. The market is slowly waking up to the idiots in the capital.

If I were a trader, I would be buying stocks on any weakness over the next few days. This is not going to last very long, probably not more than a week or so. If you're in the market for the long haul, bailing out now and getting back in before the bounce is not a good strategy.

 

[KissMy]

Social Security and Medicare systems, and the independent Federal Reserve System account for 41 percent of the federal debt, more than $2 of every $5. We're not the only ones buying, though. Nearly one-third of the national debt is owed to other countries. China is the biggest foreign creditor ($1.144 trillion), followed by Japan ($1.076 trillion), but together they own less than 15 percent of it. Mexico and Canada together are owed $90 billion.

China & Japan sent warnings yesterday. Rates are climbing today. Social Security trust will also start getting paid higher rates. Default is not an option.

 

[Vandalshandle]

Having sold everything yesterday, I find it mesmerizing to watch the DOW in a freefall this morning.

I almost dislocated my arm, patting myself on the back a few minutes ago....

I am buying. when selling panic begins, its the time to buy.

so you sold and now have cash, do you think that is going to appreciate when the govt is borrowing 40 cents of every dollar it spends?

Of course not. I suspect that the DOW is going to bottom out somewhere in the 12,000's. THAT is when I will buy.

 

[Redfish]

Having sold everything yesterday, I find it mesmerizing to watch the DOW in a freefall this morning.

I almost dislocated my arm, patting myself on the back a few minutes ago....

I am buying. when selling panic begins, its the time to buy.

so you sold and now have cash, do you think that is going to appreciate when the govt is borrowing 40 cents of every dollar it spends?

Markets will not rebound in a high interest rate environment. Cash is king. High interest bonds is where the money will flow. The economy will slow down.

opinions are like assholes, everyone has one.

 

[Redfish]

Having sold everything yesterday, I find it mesmerizing to watch the DOW in a freefall this morning.

I almost dislocated my arm, patting myself on the back a few minutes ago....

I am buying. when selling panic begins, its the time to buy.

so you sold and now have cash, do you think that is going to appreciate when the govt is borrowing 40 cents of every dollar it spends?

Of course not. I suspect that the DOW is going to bottom out somewhere in the 12,000's. THAT is when I will buy.

timing the market is very difficult, even the experts rarely get it right. but if thats your plan stick with it. I doubt it will go to 12,000, but who knows.

 

[Vandalshandle]

Having sold everything yesterday, I find it mesmerizing to watch the DOW in a freefall this morning.

I almost dislocated my arm, patting myself on the back a few minutes ago....

Interest rates are climbing rapidly now. The market is slowly waking up to the idiots in the capital.

If I were a trader, I would be buying stocks on any weakness over the next few days. This is not going to last very long, probably not more than a week or so. If you're in the market for the long haul, bailing out now and getting back in before the bounce is not a good strategy.

Absolutely correct...but since I am getting a little long in the tooth, my long term statagy is to wake up tomorrow morning....

 

[Redfish]

Interest rates are climbing rapidly now. The market is slowly waking up to the idiots in the capital.

If I were a trader, I would be buying stocks on any weakness over the next few days. This is not going to last very long, probably not more than a week or so. If you're in the market for the long haul, bailing out now and getting back in before the bounce is not a good strategy.

Absolutely correct...but since I am getting a little long in the tooth, my long term statagy is to wake up tomorrow morning....

LOL, mine too

 

[hangover]

OMG! When the default happens there won't be any more college or NFL football games! There won't be a MLB world series!

Default means money becomes worthless. Anyone remember when Mexico defaulted? Their money became worthless. When that happens to the U.S., then it's global.

Then we don't get any more food from South America, where half our food comes from these days. Walmart goes out of business, because China won't be sending them any more cheap crap. No more oil! Gas will be $50.00 a gallon!

Jobs? Why? Money is worthless. Do you think cops are going to put their life on the line for nothing?

This default is going to make the 1929 Great Depression look like a picnic.

 

[Vandalshandle]

[ame=http://www.youtube.com/watch?v=yHFDa9efCQU]Bobby McFerrin - Don't Worry Be Happy - YouTube[/ame]

 

[TooTall]

OMG! When the default happens there won't be any more college or NFL football games! There won't be a MLB world series!

Default means money becomes worthless. Anyone remember when Mexico defaulted? Their money became worthless. When that happens to the U.S., then it's global.

Then we don't get any more food from South America, where half our food comes from these days. Walmart goes out of business, because China won't be sending them any more cheap crap. No more oil! Gas will be $50.00 a gallon!

Jobs? Why? Money is worthless. Do you think cops are going to put their life on the line for nothing?

This default is going to make the 1929 Great Depression look like a picnic.

I read the book 'Atlas Shrugged' years ago and recently watched the movie on Netflix. You forgot to mention trains.

 

[KissMy]

U.S. credit rating again in danger of downgrade: The three main credit rating agencies have all warned, in varying degrees, the United States rating could be cut should it hit an expected October 17...

Fitch said that the U.S. rating is at risk because failure to raise the debt ceiling sufficiently in advance of the deadline raises questions about the full faith and credit of the United States to honor its obligations. "This 'faith' is a key underpinning of the U.S. dollar's global reserve currency status and reason why the U.S. 'AAA' rating can tolerate a substantially higher level of public debt than other 'AAA' sovereigns,"

Fitch said if the debt ceiling isn't raised in a "timely manner," meaning several days prior to when the U.S. Treasury says it will have exhausted extraordinary measures and cash, it will launch "a formal review of the AAA rating and likely lead to a downgrade." Some on Wall Street believe the firm could cut even if a deal is reached in Congress.

"Depending on how contentious the negotiations are, there is an increasing probability that Fitch downgrades the rating from AAA to AA as the 'x' date is approached," Bank of America Merrill Lynch wrote in a note to clients on October 1.

Moody's said Failure to increase the ability for the government to issue debt to pay its bills could "theoretically affect all categories of government spending, including debt service."

STANDARD & POOR'S:

Standard & Poor's said If U.S. government debt is not serviced, it would lower the rating to selective default, or SD. It would remain there until delinquent principal and interest payments are made.

S&P cut the U.S. credit rating, lowering it to AA-plus from AAA in 2011. The cut occurred even after the U.S. government raised the debt limit in 2011. S&P cited the breakdown in the ability of the Democratic and Republican parties to govern effectively for the downgrade.

 

[Flopper]

Having sold everything yesterday, I find it mesmerizing to watch the DOW in a freefall this morning.

I almost dislocated my arm, patting myself on the back a few minutes ago....

I am buying. when selling panic begins, its the time to buy.

so you sold and now have cash, do you think that is going to appreciate when the govt is borrowing 40 cents of every dollar it spends?

Markets will not rebound in a high interest rate environment. Cash is king. High interest bonds is where the money will flow. The economy will slow down.

If you think long term interest are going to rise significantly, high yield bonds are not the place to be because they will go down in value as interest rates rise. I think we are in for a long slow rise in interest rates over next couple of years. Over the next week or so, I expect the bond market to be pretty erratic.

 

[Contumacious]

[

No one is questioning the validity of the existing debt. .

HUH?

I am.

Would you have demanded that black South Carolineans pay for the costs of the civil war?

Would you have demanded that Jews pay taxes for the costs incurred by Nazi Germany to gas and incinerate them?

Why then would you demand that I pay the costs of financing the welfare/warfare state?

.

The just debts of the United States are the just debts. If you do not want to pay the costs of financing the welfare state, vote for people who will not pay for a welfare state. .

Bullshit.

The reason the democrats cater to the parasitic faction is because they are a majority, and they vote , early and often.

There is no way a party will win the election at this time as long as those who benefit from federal largesse vote.

.

 

[RKMBrown]

No, thats not the way it works. nothing can be spent until congress passes an authorization and appropriation bill. those bills set aside the money for the things included in the bills.

an increase to the debt limit would be for new spending, not previously authorized spending.

Wrong. But thanks for trying.

NO, I am not wrong, I spent over 40 years dealing with govt funding. I know precisely how it works.

No govt money can be spent until the project or program is authorized and the money appropriated for it. congress cannot appropriate money they don't yet have.

each appropriation is identified by a line of accounting which used to be called a zipper sheet. It means that money has been set aside and cannot be used for anything else.

Some programs use multi year funding and require an annual appropriation.

The problem is that since obozo has never allowed a budget to be put in place, he is just spending whatever he wants and ignoring the fiscal rules of the govt.

I see. So your point is that I'm right only by facts and evidence and you are wrong only because Obama is ignoring the rules and getting away with it?

I don't get your point yet. By my measure the government allocated more spending than they had revenue. Or perhaps you can explain to me how congress set aside money that it did not have.

 

[KissMy]

Treasury auction went badly today. The 4 week rate tripled. Yield curve is inverting. - source Bloomberg TV

 

[boedicca]

The only reason the nation will default on the debt is if Obama decides not to pay the $20-30B of interest that is coming due.

Considering the massive amounts of cash the Feds collect each month in tax receipts, there is plenty of money to pay the interest.

 

[boedicca]

Treasury auction went badly today. The 4 week rate tripled. Yield curve is inverting. - source Bloomberg TV

Yep. It certainly doesn't help with Obama out there talking down the markets and threatening Wall Street.

 

[Yurt]

If someone calls you and threatens to ruin your credit, if you don't do what they want you to do, they can be arrested for extortion.

So can the FBI arrest House Republicans for extortion?

“The fact that we are here today to debate raising America’s debt limit is a sign of leadership failure,” he said. “It is a sign that the U.S. Government can’t pay its own bills. It is a sign that we now depend on ongoing financial assistance from foreign countries to finance our Government’s reckless fiscal policies. … Leadership means that ‘the buck stops here.’ Instead, Washington is shifting the burden of bad choices today onto the backs of our children and grandchildren. America has a debt and a failure of leadership. Americans deserve better. I therefore intend to oppose the effort to increase America’s debt limit.”

It should be noted that in 2006, every single Democrat Senator voted against raising the debt ceiling, including Senator Obama.

.