Well it doesn't look like raising the debt ceiling will be as easy as it looks, according to recent news; "Talks to reach a more ambitious deficit-reduction deal effectively broke down Saturday, House Speaker John Boehner said. Sunday's scheduled talks will go on but the goal will be less bold than what President Obama requested, Boehner said." Expect investors to be scared out of their pants this week. Causing the VIX to surge big on Monday and the SPX to drop big. I wish I was long VIX $16 calls last week!!!!! GRRRRRRRRRRR!!!!
The administration is prepared to use an amendment clause from the civil war. It states that the nations bills must be paid no matter what Congress says. ie... a cap is meaningless and actually violates this amendment, therefor a cap is unconstitutional.....lol? It will be used if they do not agree. They cant even stop Executive from War, any War for any amount of time. Even though THAT they should still have power in. Congress is toast and is now only a loud form of bad political talk tv. Meaningless annoying and having zero impact. Welcome to the empire. Executive has taken over.
So true... Just this last weekend I was asking my 13 year old nephew if he knew what the three branches of government are. My brother in law jokingly chimed in saying "isn't it Executive branch, Executive Branch, and Executive Branch" lol
It was Karl Rove and company who wanted to grant the Executive branch the power of a king. Look what they got.
Seems like it. If folks thought there was a real chance of meaningful default, VIX would already be at 80.
Absolutely disgusting. How can a political party pull out of high impact talks on problems which, if they do not get resolved, are potentially very harmful for the country? Regardless of the "it will get resolved in the end" feeling everybody has, it is still an issue. Not because the debt won't get serviced but because in the meantime it's not about whether it gets resolved, it's about the overall incompetence and inability to effectively govern that's on display here. Also, this has no impact on the stock market whatsoever. If anything, it's a positive going forward. Treasuries have always been seen as "risk-free" but if they suddenly are not so "risk-free" and the perception is maintained that cash is trash (why wouldn't it be, the chances are very high the central banks will stay the course) then suddenly money will have nowhere to go but stocks and commodities. So possible scenarios under a real surprise (not this) in regards to the debt ceiling is the unlikely scenario that cash will rise as a function of both bonds, commodities and stocks falling or bonds will fall and commodities and stocks will rise. I don't see how this affects corporate profits so far. If anything, it's a good thing if nothing happens because it would be a negative if there were big budget cuts or tax increases. For a stockholder the best-case scenario is that no agreement is reached and treasury will ignore congress and continue on its current path.
A Bush comment over an unintentionally live mic once caught him saying something like, "I wouldn't mind a dictator in the US so long as it was me." America has bigger problems than we realize when the Executive Branch says, "screw Congress and the Constitution." What we need is for those who carry out Executive Orders and directives to refuse as unconstitutional. Until then, the Executive will become more and more dictator-like. Shouldn't be too long be we no longer bother with elections.