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Unreal, herds of elephants stampeding circles on the head of a pin, mad scramble to lock in negative returns better than the next guy in expectation of 'the great debt ceiling miracle' which cant possibly have any good outcome at all. I think more people are realizing we're at the Swan Song stage.
In a nutshell, if the debt ceiling issue is not resolved by 22 July, what will the likely effect be on:
2) $ index (or €/$ inversely)
3) bond prices (or yield inversely)
None because of the Treasury's "secret plan" to use the Federal Reserve as a broker to continue operations. Reported as a Reuters exclusive and completely ignored by the media because it is not in the White House or Republican talking points issued to the press.
Its a trick question, there is no way to resolve the debt ceiling issue. They can try some lies, kick the can a couple more feet....but is anyone believing it?
...but is anyone believing it?
...but is anyone believing it?
I'd venture a guess that If their paycheck has U.S. treasury stamped on it, they probably still believe.
Something to add to the nutshell.
If the debt ceiling is not increased/budget deal done by July 22, other likely effects are:
1) The further pilfering of retirement funds can continue.
2) A "compromise" deal will have to be hastily assembled due to the down-to-the-wire impasse, and budget will finally pass, increasing the debt ceiling, with tax breaks protected, and assistance programs gutted.
3) More time for bankers to assemble their wish list, for when austerity comes to US shores.
OT, but somewhat relevant (actually):
This is like sell side analyst speak, where a 'strong buy' recommendation means "flip a coin and take your chances," a 'buy' means "you're on your own," a 'hold' means "wtf bro, you crazy?," and a sell means "we never, ever recommended that stock, did we?" -
Translation: Applied Materials says hunker down because there's a shit storm, Category 5, ETA soon.
Maybe Moody's will downgrade Italy to scare people into those 3 years?
Moody's--a bear's best friend these days.
UBS jumps on the gold train:
Gold: The only safe haven out there
Sovereign debt problems in Europe and the US and high inflationin emerging markets keep the structural outlook forgold bright.
Gold is an outright buy from a diversification perspective. Wetarget a move to USD 1,650/oz with price spikes above.
In the current period of elevated uncertainty, gold remains theultimate currency. Investors realize that holding cash significantlyerodes their purchasing power as inflation remains a concern. Investmentdemand for the inflation-protection qualities of gold islikely to stay strong. Gold is an outright buy for market participantsfearing an outbreak of the European debt crisis. From a chart-technicalpoint of view we recommend to go long gold below USD1,500/oz.
C'mon. Everybody knows what happens next. The debt ceiling gets passed after acrimonious and bitter debate, then word gets out right after that the gub'mint borrowed more money than they actually stated.
Debt ceiling will get passed, otherwise "financial Armeggedon" (Larry Summers today, taking a trope from the Hank Paulson phrase book).
Complete with Martial Law & Tanks in the Streets, too?
Just like 2008?
Wow. Thank God for Larry Summers. That proud Patriot!
Exactly - and we get right back to Geithner reversing himself by saying that his "Great Recession" reference was a misnomer and that things are Bullish so you need to re-elect a certain illegal alien
Borrowed from who?
BennyBucks? You need to believe in qe3.
Need new scary chart: US-General Collateral spread, or U$B$-spread.
High beta momo in a holding pattern today. Algos just scalping this entire asset class like they did C before the split. Only stable trade on the screen: leveraged long oil.
More like Bill market knows theys a huge backlog of issuance coming they way the minute Bam Bam signs the new debt ceiling - Timmeh has about 500 billion to issue in the next month....
- Yield 0.670% vs. Exp. 0.680%- B/c 3.22 vs. Avg. 3.21 (Prev. 3.28)- Indirect 34.5% vs. Avg. 32.83% (Prev. 35.63%)- Allotted at high 31.73%
They had to payto hold US fiat for 4 weeks with Europe in meltdown, that is a rapidly decaying half-life of the US's flight to safety status.
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