Thoughts on Debt Ceiling

Probably (A) although I think there are a scary number of TPs that would take pride in shutting down government, so more of a possibility than it should be. But even if they get a last minute deal the market will start selling off well before that. For too many people it is simply not worth the risk of a 10-15% hit. So easy to just put your money on the side for a week or two and maybe miss the 3% bump when a settlement comes.

So I am half in cash, and heavily hedged (short DIA, SPY, calls on VIXY, GLD). I also set a bunch of stops last week which are getting picked off.

I find it weird that all year finance types have been calling for a correction and now that one seems likely or very possible they are saying it is a buying opportunity. Strange.

u rednecks so simple so naive

there is no impact at all, the us gov will print much more junk money, and will also deadbeat

Only stupidity of the highest order would result in an outcome of A). Of course, the posturing and hardlining associated with negotiations will continue. I understand that Boehner has already said that he would get a motion passed even with a minority of republicans to avoid going over the cliff. Let's face it, just like the banks, government debt is a confidence game.

I like high ceilings.

http://www.youtube.com/watch?v=Lomy7xAVDKE

Thank you, rs, for yet another youtube.

That was me.

As someone whose savings is almost entirely in cash (mostly foreign but some USD), I would love to see a big 2009-style correction. I'm just wondering if the dollar will be pushed down further before a deal is reached.

Dylan Ratigan had some thoughts(good video too)

http://www.zerohedge.com/news/2013-10-15/dylan-ratigan-rages-over-extraction-america-and-bought-congress#comment-4058806

more stupid links.

anything that you can contribute?

of course not.

Dylan Ratigan, what a complainer, and not even on MSNBC.

If you take Clinton-era spending levels and adjust for inflation and population growth, federal spending would be about $2.7 trillion. Federal tax receipts in 2012 were $2.45 trillion. Returning to adjusted adjusted Clinton-era spending levels would allow us to nearly balance the budget.

They need to cut spending and start paying off the $16.7 trillion debt. NOT borrow more.

Bill Clinton, the good* old days

*depends what the definition of "good" is

Clinton had leadership skills and was able to negotiate with both parties to deliver reasonable budgets. Yearly deficits were minimal by today's standards, and there were even surpluses a few years. See http://www.taxpolicycenter.org/taxfacts/displayafact.cfm?Docid=200

the biggest government branch -- military is still running, means they have more than enough money, no worries

Reagan / Tip O'Neill.....A)
Clinton / Newt Gingrich ....A)
Even Bush / Pelosi.......A)

A no guile Boehner and a not negotiate anything in 5 years Obama......D) Pot luck

Maybe Putin can give us a solution.

there a great videos and articles here, too:

www.google.com