US Debt
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A gambler would also label borrowing from one ah long to pay another, while looking for a job and cutting back on gambling an ‘intermediate term’ strategy.
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tankee:
Raising ceiling is for immediate term as defaulting will have major effect on fragile economy. They are working on cutting costs and raising taxes to reduce their debt. The disagreement is on what to cut and how much to cut, and what tax to raise.
In the end, no tax raised I think. Republicans won, America as a whole lost. Rich cannot subsidise for the poor. -
The agreement reached on Sunday night was met with elation and a relief rally in Asian markets and well as a brieF moment in European markets. It was clear that the agreement was probably too little too late, and the underlying issue was if it was used enough not to have a significant effect to stave off the downgrade. The main US market didn’t like the deal announcement but all these didn’t matter as the economic data was released to show that the economy expanded the least in 20 months.
Today is e dealine, and even with agreement, looks like they will be late in action as there is no legislation ( as it takes time ).
The European debt has taken a silent step back from the media eye, but watch for it’s return within months.
There is simply too much debt all around, and no one wants to take the bitter pill. 2008 was a prelude, and today, we still continue with even more debt.
Crudely put, to borrow from ah long to pay bank loan is asking for trouble… Which will come to pass. -
ohdaddy:
I agree on this... I truly think that as a country, the majority have lost.. the rich will continue with their tax reliefs.. the republicans continue to keep Obama in check, politicking continues, and the problem is just pushed to another day...tankee:
Raising ceiling is for immediate term as defaulting will have major effect on fragile economy. They are working on cutting costs and raising taxes to reduce their debt. The disagreement is on what to cut and how much to cut, and what tax to raise.
In the end, no tax raised I think. Republicans won, America as a whole lost. Rich cannot subsidise for the poor. -
I am just thinking if US will just print more money to tide over this…
And even they put up more bonds will anyone dare to buy now?
George Soros is also retiring, is this a sign of what is to come. -
Mrsbongz:
I agree on this... I truly think that as a country, the majority have lost.. the rich will continue with their tax reliefs.. the republicans continue to keep Obama in check, politicking continues, and the problem is just pushed to another day...[/quote]Yeah, many of the reports say that everyone lost over the compromise. I'm not sure if Democrats defaulted and S&P ratings dropped, would they be seen as the bad guy or the Republicans.ohdaddy:
[quote=\"tankee\"]Raising ceiling is for immediate term as defaulting will have major effect on fragile economy. They are working on cutting costs and raising taxes to reduce their debt. The disagreement is on what to cut and how much to cut, and what tax to raise.
In the end, no tax raised I think. Republicans won, America as a whole lost. Rich cannot subsidise for the poor. -
well, they did reach a solution before time runs out. that is truly a bad news because it means the US$ will depreciate more in the next few years as they move towards the new ceiling for the their national debt
it is good time to borrow in USD -
verykiasu2010:
Not exactly true... the rise in Treasuries are indicating something otherwise... the effects of this debt ceiling increase appears to imply a larger and more significant effect on the economy.well, they did reach a solution before time runs out. that is truly a bad news because it means the US$ will depreciate more in the next few years as they move towards the new ceiling for the their national debt
it is good time to borrow in USD
The USD is rising, and may rise significantly due to Treasury demand. -
i wonder what will happen if US credit rating is adjusted downwards. I just hope that the impact to world economy is not too big when it happens. :sad:
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tankee:
i wonder what will happen if US credit rating is adjusted downwards. I just hope that the impact to world economy is not too big when it happens. :sad:
US based rating agency like Moody & S&P 'will' not adjust their master's rating down. They, however, are free to 'wack' the PIGS in Europe. Now the debt problem in US is solved, the next drama should be from Europe. Moody & S&P will be the supporting cast.
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