The Next Big Crash - Are You Prepared?

http://finance.yahoo.com/news/report-oba...15837.html

think the original source is from NYT.

(11-10-2013, 10:45 AM)freedom Wrote: http://finance.yahoo.com/news/report-oba...15837.html

think the original source is from NYT.

Yea, but it seems like there's progress being made

Quote:The New York Times initially reported that Obama had rejected Republicans' offer of a clean, six-week debt ceiling increase because it didn't address the government shutdown.

But both the White House and House leaders took a more optimistic tone. Both sides pledged to work throughout the night to complete a deal.

"No final decisions were made; however, it was a useful and productive conversation," House Republicans said in a joint statement.

(11-10-2013, 10:35 AM)freedom Wrote: People don't feel offended when they are questioned if they have the knowledge. They are more than happy to share their knowledge. Only those thinking they are above everyone, feel offended when they are questioned. They think everyone should just accept their idea without questions.

Enough is said.

Let's get back to the topic.

Pres. Obama just rejected the proposal of temporary lift of debt ceiling for 6 week with government shutdown from the Republicans. Who is risking the future of the US? The Democrats or the Republicans?

What would you tell a person whose spending constantly exceeds his/her income? Will you be happy to suggest them to borrow more to spend?

Given that talks are ongoing, I think we should give them time. Everyone seems to expect both sides to come to a deal and I think it makes no sense for them to fail. If there is one thing US politicians are good at, it's looking after themselves. I doubt they will jeopardize their portfolios or those of their backers.

(11-10-2013, 10:54 AM)Clement Wrote:

(11-10-2013, 10:35 AM)freedom Wrote: People don't feel offended when they are questioned if they have the knowledge. They are more than happy to share their knowledge. Only those thinking they are above everyone, feel offended when they are questioned. They think everyone should just accept their idea without questions.

Enough is said.

Let's get back to the topic.

Pres. Obama just rejected the proposal of temporary lift of debt ceiling for 6 week with government shutdown from the Republicans. Who is risking the future of the US? The Democrats or the Republicans?

What would you tell a person whose spending constantly exceeds his/her income? Will you be happy to suggest them to borrow more to spend?

Given that talks are ongoing, I think we should give them time. Everyone seems to expect both sides to come to a deal and I think it makes no sense for them to fail. If there is one thing US politicians are good at, it's looking after themselves. I doubt they will jeopardize their portfolios or those of their backers.

I will ruled out a prolonged debt default, but I will not ruled out that nothing gets done on 17 October.

They might be other issues in calculation besides immediate opinion polls

As said earlier and agreed by Moody's, debt default is a choice, not a mandate.

No matter what happened, debt default is a stupid thing. It's like you have the money, but choose to default.

Debt default should never be allowed to happen.

I think they will come to an agreement by this weekend. Obamacare is off the table and therefore both parties are not that far apart.

(11-10-2013, 11:13 AM)Clement Wrote: I think they will come to an agreement by this weekend. Obamacare is off the table and therefore both parties are not that far apart.

They are going to kick the can down the road for 6 weeks and then the circus starts again.

don't forget the superbond!

the debt limit is defined by the face of the bills issued - not by the receipt. one suggestion is for the treasury to issue bills that receive e.g. 250cts on the dollar i/o 100cts - of cos this comes with a higher interest payment so that the pv of these superbills are the same as the traditional par bonds. so same debt limit remains, but the Treasury can then get much more cash than the traditional bill.

u have to admire the creativity that comes with a fiat system...

(11-10-2013, 11:17 AM)Jacmar Wrote:

(11-10-2013, 11:13 AM)Clement Wrote: I think they will come to an agreement by this weekend. Obamacare is off the table and therefore both parties are not that far apart.

They are going to kick the can down the road for 6 weeks and then the circus starts again.

Well that is to be expected. I was expecting a more Hollywood like ending where they pass the debt ceiling bill just as the last billion or so leaves their account.

A better explanation about government shutdown and default from Wikipedia.

Quote:Under US law, an administration can spend only if it has sufficient funds to pay for it. These funds can come either from tax receipts or from borrowing by the United States Department of the Treasury. Congress has set a debt ceiling, beyond which the Treasury cannot borrow (this is similar to a credit limit on a credit card). The debt limit does not restrict Congress’s ability to enact spending and revenue legislation that affects the level of debt or otherwise constrains fiscal policy; it restricts Treasury’s authority to borrow to finance the decisions already enacted by Congress and the President. Congress also usually votes on increasing the debt limit after fiscal policy decisions affecting federal borrowing have begun to take effect.[6] In the absence of sufficient revenue, a failure to raise the debt ceiling would result in the administration being unable to fund all the spending which it is required to do by prior acts of Congress. At that point, the government must cancel or delay some spending, a situation sometimes referred to as a partial government shut down.

It also helps to answer earlier question about whether US government not paying its obligations other than debt is a default. Apparently, it is called government shutdown.