In an ominous supplication to the fact that a deal may not be coming President Obama admitted that his administration is "exploring all contingencies on the debt limit." We assume, given his dismissal of the 14th Amendment and the idiocy ("there are no magic bullets" to avoid default) of the trillion-dollar-coin and premium-bond issuance to the Fed, this implies - unlike the ECB - that they are conceding it is possible we cross the "X" date. His remarks were a perfect rehash of everything he has said before... unless the Republicans stop demanding 100% of what they want and give him 100% of what he wants, he will not negotiate. In Summary: no negotiation with extremists holding hostages
Headline summary of speech (via Bloomberg):
- *OBAMA SAYS `HAPPY' TO NEGOTIATE AFTER GOVERNMENT REOPENED
- *OBAMA SAYS CONGRESS SHOULD NOT DEMAND RANSOM FOR DOING ITS JOB
- *OBAMA SAYS SPENDING BILL, DEBT LIMIT `BASIC' JOB OF CONGRESS
- *OBAMA SAYS TELLS CONGRESS `LET'S LIFT THESE THREATS'
- *OBAMA SAYS NO `SERIOUS POSITIONS' FROM REPUBLICANS
- *OBAMA SAYS REPUBLICANS RUNNING OUT CLOCK FOR LEVERAGE
- *OBAMA SAYS DEMOCRATS HAVE SHOWN WILLINGNESS TO TALK
- *OBAMA SAYS TO BOEHNER `LET'S STOP THE EXCUSES'
But the market doesn't believe this will be a problem...
- *OBAMA SAYS U.S. DEFAULT WOULD UNDERMINE CONFIDENCE IN AMERICA
- *OBAMA SAYS DEFAULT WOULD CREATE RISK OF `VERY DEEP RECESSION'
It's the extremists' fault...
- *OBAMA SAYS REPUBLICANS ARE OBSESSED WITH DISMANTLING HEALTH LAW
- *OBAMA SAYS `PIECEMEAL APPROACH' NOT RIGHT TO FUND GOVERNMENT
Open to negotiation... ummm...
- *OBAMA SAYS HE WILL TALK ABOUT `ANYTHING' WITH REPUBLICANS
- *OBAMA SAYS HE WILL NOT PAY `RANSOM' FOR NATION TO PAY BILLS
- *OBAMA SAYS HE WILL CONTINUE TO BE `HOPEFUL' DEBT LIMIT RAISED
- *OBAMA SAYS U.S. HAS OBLIGATIONS BEYOND TREASURY BILLS
- *OBAMA SAYS U.S. MUST PAY CONTRACTORS, RETIREES, VETERANS
- *OBAMA SAYS `NO OPTION IS GOOD' IN EVENT OF DEFAULT
- *OBAMA SAYS REPUBLICANS CAN ATTACH `PROCESS' TO DEBT BILL
Forget about the gimmicks - trillion dollar coin, 14th Amendmen etc...
- *OBAMA SAYS NOTHING COULD `WISH AWAY CHAOS' OF DEFAULT
- *OBAMA SAYS U.S. `EXPLORING ALL CONTINGENCIES' ON DEBT LIMIT
- *OBAMA SAYS HE'S `NERVOUS' SOME REPUBLICANS SAY DEFAULT NOT BAD
- *OBAMA SAYS `THERE COMES A POINT' WHEN TREASURY CAN'T PAY BILLS
- *OBAMA SAYS `THERE ARE NO MAGIC BULLETS HERE' ON DEBT LIMIT
It's affecting our standing around the world (which is already low)...
- *OBAMA SAYS DEFAULT DEBATE `HURTS OUR CREDIBILITY' IN WORLD
- *OBAMA SAYS GOVERNMENT SHUTDOWN CREATES `MISSED OPPORTUNITIES'
- *OBAMA SAYS CREDITORS WON'T BE CALMED UNTIL BOEHNER ACTS
- *OBAMA SAYS `DIDN'T HELP' HE WAS UNABLE TO ATTEND ASIA SUMMIT
- *OBAMA SAYS U.S. MUST STOP REPEATING `PATTERN' OF CRISES
- *OBAMA SAYS `I'M SURE THE CHINESE DON'T MIND' HE'S NOT AT SUMMIT
And it doesn't seem like a deal will be done before late Thursday - given this!!
- *OBAMA SAYS LEW WILL MAKE `FORMAL PRESENTATION' ON THURSDAY
- *OBAMA SAYS LEW WILL SPEAK TO PRIORITIZATION BEFORE SENATE CMTE
- *OBAMA SAYS NEW COMMITTEE NOT NEEDED TO DISCUSS SPENDING, DEBT
So for those confused, here are the Cliff Notes: