Forget about the headlines, the most concerning statement from the entire circus of Jack Lew's hearing was his comment that the world counts on the US to be responsible. It seems that boat sailed a long time ago. The following succinctly summarizes the key aspects of his testimony and the Q&A. As a reminder, Lew noted "Obama did negotiate," denied the chance of "prioritization," and warned that other nations appear ready (and somewhat excited) for the US to falter.
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The End of the world...
- *LEW: DEBT-LIMIT INACTION THREATENS SOCIAL SECURITY PAYMENTS
- *LEW SAYS GOVT HAS NUMEROUS LARGE PAYMENTS SHORTLY AFTER OCT. 17
- *LEW SAYS BIGGEST RISK TO U.S. GROWTH IS 'MANUFACTURED CRISIS'
- *LEW SAYS DEFAULT COULD HURT VALUE DOLLAR, STOCKS COULD TUMBLE
- *LEW SEES 'IRREVOCABLE DAMAGE' FROM PRIORITIZING PAYMENTS
- *LEW SAYS NOT PAYING BILLS WOULD MEAN U.S. DEFAULT
- *LEW CITES 'UNNECESSARY BLOW' TO U.S. ECONOMY
Only so much we can do...
- *LEW SAYS EXTRAORDINARY MEASURES NOT `INFINITE'
- *LEW SAYS U.S. CAN'T WAIT TO LAST MINUTE ON DEBT LIMIT
- *LEW: NO ONE WANTS TO TEST WHAT HAPPENS IF DEFAULT LINE CROSSED
And the rest of the world is chomping at the bit to knock us down...
- *LEW SAYS 'THE WORLD COUNTS ON U.S.' TO BE RESPONSIBLE
- *LEW SAYS THERE'S A REASON WHY DOLLAR IS WORLD RESERVE CURRENCY
- *LEW: OTHER NATIONS WOULD LIKE FX BASKET AS DOLLAR ALTERNATIVE
- *LEW: IT'S IMPORTANT U.S. HOLDS ITS POSITION IN WORLD ECONOMY
Markets worried
- *LEW WARNS DEBT-LIMIT 'UNCERTAINTY' STARTING TO STRESS MARKETS
- *LEW SAYS MARKETS SHOWED 'UNEASE' IN PAST FEW DAYS
- *LEW CITES RISE IN SHORT-TERM TREASURY YIELDS
Real Economy worried
- *LEW SAYS 'WE ARE IN A BETTER PLACE' ON ECONOMY
- *LEW SAYS HIGHER INTEREST RATES FLOW THROUGH ECONOMY
- *LEW SAYS RETAILERS WORRIED ABOUT NOV., DEC. SALES PERIOD
- *LEW SAYS ECONOMY WOULD BENEFIT FROM LESS BRINKSMANSHIP
- *LEW WARNS OF POSSIBLE INABILITY TO PAY TROOPS, VETERANS
- *LEW SAYS SHUTDOWN BEGINNING TO HAVE ECONOMIC CONSEQUENCES
On Prioritization:
- *LEW SAYS PRIORITAZATION IS 'DEFAULT BY ANOTHER NAME'
- *LEW DOESN'T THINK THERE IS A WAY TO PICK AND CHOOSE ON PAYMENTS
- *LEW SAYS THERE'S NO GOOD SOLUTION IF DEBT LIMIT NOT RAISED
- *LEW SAYS 'OPTIONS ARE ALL BAD' IN PICKING WHAT PAYMENTS TO MAKE
On negotiating:
- *LEW SAYS OBAMA HAS NEGOTIATED
- *LEW SAYS LONGER THE DEBT CEILING EXTENSION, THE BETTER
- *LEW SAYS FISCAL TALKS HAVE TO BE A 'TWO-WAY STREET'