24 Responses to Washington fiddles around while global markets are set to burn

  1. Luisport: The mood this morning is mostly: What panic?

    The lack of a debt ceiling deal isn’t seriously roiling equity markets, and Treasuries don’t really care at all.

    But this is quite a move for The Greenback, which is just getting smoked against the Swiss Franc and the yen. In fact, the Franc has made a 2% move against the dollar, which is looking more and more like a currency issued by a joke of a country.

    Read more: http://www.businessinsider.com/dollar-plunge-july-25-2011-7#ixzz1T7EmBFxT

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  2. Charlotte says:

    Since Obama in office, all downhill for the USA.

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    • mary says:

      Actually if you read the U.S. Constitution as I just had an entire semester on it. You would know that it says the President can only do four things. The Budget is all up to Congress and Congress alone. In the Constitution THE HOUSE OF REPRESENTATIVES HAS MORE POWER THAN THE PRESIDENT SO BLAME THE GOP THEY DO NOT WANT TO RAISE TAXES ON THW WEALTHY JUST THE MIDDLE CLASS AND POOR.

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    • skywalker says:

      it was the previous “Bush” administration that made the financial problems, mr Obama is the scapegoat who is left to pick up the pieces and repair the damage , if that is at all possible

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      • Luca says:

        It isn’t just Bush. It’s every president before Bush as well they have all had their hand in this present crisis. New presidents just get leftovers and more problems from past presidents and sometimes create even more problems.

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  3. Wiseguy says:

    Everybody is falling for this scenario. The market is making tons of money playing the fear about debt ceiling. We all know that US won’t go bankrupt, we all know they’ll find a settlement. The Elites are laughing all the way to the bank, playing the ups and downs of the market right now… Buy on rumors (fear) sell on news… Don’t be so naive…

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    • When you have more outstanding debt than asset liquidity, you’re bankrupt. Declaring it is just a legal process executed to stave off creditors. Reaping huge sums on market flucations doesn’t eradicate the rules of economics. Money is moved from one hand to the next and what’s left in its wake is more debt. It is debt that will eventually take the system down and make paper money absolutely worthless. Paper currency has no asset value but confidence. History is litered with people who thought they were too smart to allow this to happen. When you’re robbing Peter to pay Paul; it’s nothing more than a grand pyramid scheme as ponzi king Bernie Madoff said, and the paper money always returns to “its intrinsic value” as Voltaire said, which is ‘nothing.’

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      • Kelly says:

        Your summation is exactly right Alvin. I don’t know how it is that so many out there think it is okay for all these countries, including the US, to just continue to go further and further into debt. In the end you have to pay the piper and playing games by shifting debt from one place to another or cranking up the printers and creating more money, does nothing but shift the inevitable a little further down the pike.

        Eventually the root causes of this mess need to be addressed. Individuals who conduct themselves like so many governments have, quickly face bankruptcy and all of the personal repercussions that come along with it. They do not have the option of changing the rules and making shit up as they go along.

        The longer this goes on and the more games that are played, the more funds that are gutted to keep from dealing with the inevitable, the more catastrophic the final crash will be.

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  4. Jonathan Nguyen says:

    http://quantumpranx.wordpress.com/a-quick-tour-of-hyperinflation-and-the-possible-consequences-for-america/
    excerpt from the above link : “…a dollar has about the same purchasing power as four cents had in 1913.”

    As per this morning’ headline : What panic?

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  5. Joey says:

    It is funny how most people (republications mostly) forget that the start of this financial crisis started when Bush Sr. was in office and approved the junk bond deals. Then got worse after Bush jr. was in office. Obama was merely given a train wreck that the republicans started. Obama can only do so much when the republicans are refusing to raise the debt ceiling because their only concern is for the rich and are trying all that they can do to get rid of the lower and middle class. Boehner needs to grow up and start working like a team.

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    • Brian says:

      I think you wanna take a minute and do some investigation’s on Mr Obama’s policies & spending ~ he makes the Bush family look like a bunch of ” Nice Guys ” NOT !
      Welcome to your new Socialsit State in the making by the illuminati, Obamas controllers !

      Yeah ! Welcome to ~ ” Chimexica ” But don’t feel bad , I live in Azania the old South Africa
      also living under the New Red Flag called Democracy aka Socialism…
      You know Welfare States…

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  6. luisport says:

    It’s looking more and more likely that Congress will not hit the August 2 deadline, but according to Charlie Gasparino you should have no fear.

    He reports that in secret, the administration has been making calls to Wall Street, telling bankers that the administration will find a way to avoid no matter what.

    It’s not clear what that means: Payment prioritization, the 14th Amendment option, or perhaps some new special measure Geithner could pull out to conserve cash?

    That being said, the Administration reportedly does believe that a downgrade is still likely without a deal that cuts costs.

    A lot of folks have suspected that August 2 isn’t REALLY a debt default day… it might explain the market’s ennui at the failure of politicians to solve this issue.

    Meanwhile, one GOPer is out saying that if Obama did let a default happen that he’d possibly be impeached, which is hilarious because others have talked about impeachment in the event that the 14th Amendment is invoked.

    Read more: http://www.businessinsider.com/obama-privately-telling-bankers-that-we-wont-default-2011-7#ixzz1T9EHMGKT

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  7. Shelley Wittbrodt says:

    With a very very real threat of an extinction level event on the near horizon, should this matter at all? Between the chem-trails and the media smoke screen the powers that be hope to keep our eyes on the very thing GOD warns us about, the love of money. We are to look up the true answer is in the heavens!! Please everyone pray for the gift of discernment and keep your eyes on JESUS!!!!!

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  8. luisport says:

    4:26pm | President Obama will address the nation on the status of debt talks tonight at 9PM according to the White House.

    ——————————————————————————–

    4:19pm | A lose-lose-lose-lose-lose scenario: The New York Times takes a look at five possible outcomes for the debt ceiling debate. Check it out here:

    Read more: http://www.businessinsider.com/live-coverage-eight-days-to-default-2011-7#ixzz1T9QJRdcP

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  9. Maloney says:

    See I live In Canada, but you have to understand this will effect us as much as it will You, as your dollar will go to complete shit, and ours will soar for about a month before it goes downhill. We are technically in the same boat, as well as the other countries that invested in you. Domino Theory at its finest, People.

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  10. Joeprep says:

    This is nonsense! This is not a debt limit problem but a budget problem. It’s obvious we need to increase the debt limit if we continue to pass budgets that have huge deficits year after year. All of this makes us look like lunatics to the rest of the world. It is all bringmanship, political posturing which will end up costing us more in interest when we lose our AAA rating than whatever paultry savings these clowns save. This is part of a larger problem. We need to overhaul our budget, line by line, and taxes together, but it’s not going to happen in a few days.

    – Disgusted

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  11. Larry says:

    Larry,I made a mistake with the Gold machine.I checked and here is the amendment and link.
    Shoppers can pick up a 1g coin for roughly £40 or a 250g bar for £10,250

    Read more: http://www.dailymail.co.uk/news/article-2010145/Gold-Go-vending-machine-opens-Westfield-shopping-centre.html#ixzz1TAW0StOP

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  12. John Baker says:

    Things that cannot go on won’t! Arithmetic is real and it’s mean bitch. Our rulers are trying to inflate away our debt and for years morons around the planet continued to buy US paper. They are about to learn the hard way that it’s just paper. Frankly a default followed by sharp intense depression is exactly the bracing tonic many need.

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  13. It is all a smoke screen…

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  14. luisport says:

    From Goldman’s Alec Phillips:

    Endgame: A short-term increase, with another shot at deficit reduction later this year? A two-stage process continues to look like the most likely agreement, since it is very difficult to generate savings of the magnitude being discussed without developing more complex policy reforms in a number of areas, including health programs and potentially tax policy, and those would take time. It is possible that negotiators could try to reduce the uncertainty around the second debt limit increase that the House plan would create, but in doing so an alternative enforcement mechanism for the commission process would need to be identified, which might create more controversy.

    Timeline: Senate floor consideration has started, House moving forward for Wednesday vote. The Senate began consideration today of a debt limit increase this afternoon. At this point the bill is unlikely to come up for a vote before Thursday. House leaders are expected to bring up their bill by Wednesday for a vote. There is a possibility of amendment to either proposal prior to those votes. Moreover, after each chamber passes its respective bill, it can be amended by the other chamber. The stated deadline for enacting a debt limit extension is August 2. Although the usual legislative timeline can take up to 8 days for House and Senate passage, if a deal is reached it can be expedited (as it was in April, when a deal to avert a shutdown was reached the evening of April 8th, and was enacted only a few hours later around midnight). While there is a clear risk that legislative consideration goes past the August 2 deadline, a deal still seems more likely to be enacted just ahead of the deadline. In the less likely scenario that the deadline is missed, spending would be cut sharply but the lapse in borrowing authority would very likely be brief and would almost certainly be resolved prior to the August 15 Treasury coupon payment.

    Read more: http://www.businessinsider.com/goldman-on-debt-ceiling-july-26-2011-7#ixzz1TDPZtrhM

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  15. July 26, 2011 – BIRMINGHAM, Ala. (AP) — Alabama’s largest county is laying the groundwork for filing what would be the largest municipal bankruptcy in U.S. history, over a more than $3 billion debt for its sewer system. The Jefferson County Commission approved resolutions Tuesday to hire prominent bankruptcy lawyers and to sell bonds later in case money is needed to emerge from bankruptcy. Jefferson is Alabama’s most populous county and seat of Birmingham. It’s been trying for three years to avoid filing bankruptcy over debt payments it can no longer afford. Two of the five commissioners say there’s an 80 percent chance the county will file bankruptcy. The vote could come at a meeting scheduled for Thursday in Birmingham. The commission president, David Carrington, says other possibilities include extending talks with creditors or accepting a settlement offer. –Yahoo News

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  16. luisport says:

    The Boehner plan is delayed, the Reid plan is waiting on the Boehner plan, and the White House isn’t sure it has a plan.

    Welcome to Wednesday’s debt ceiling live-blog.

    Click here or refresh the page for the latest.

    ——————————————————————————–

    5:04pm | A spokesman for the Treasury Department confirms that in the coming days the government will release its plans for what bills to pay if the debt limit isn’t raise. Read more here.

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    4:31pm | POLITICO’s Jon Allen is reporting former Senate Majority Leader Trent Lott says that, based on congressional procedure, a deal can’t be done to raise the debt limit until Weds. or Thurs. next week.

    ——————————————————————————–

    4:15pm | The Congressional Black Caucus is a “no” vote on the REID plan, according to a spokeswoman. Rep. Emanuel Cleaver was heard saying the CBC is a no vote on any bill that does not raise the debt limit in a “clean” vote in a radio interview earlier today — that is they will vote against any bill including spending cuts.

    ——————————————————————————–

    4:14pm | GOP freshman appear to be sold on the Boehner plan, after a meeting with the Speaker, Dave Weigel reports.

    Read more: http://www.businessinsider.com/live-coverage-debt-ceiling-negotiations-2011-7#ixzz1TLQK0Eoj

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