tasman1 wrote: Debt ceiling problem fixed
USA market up 2.2%
More debt for USA , higher the market
The problem is hardly fixed - the only time it will be fixed is when the budget will be balanced and they will reach zero deficit, allowing them to begin repaying the interest and the actual debt. Once the debt actually decreases, THEN problem is fixed - so this whole debt ceiling bullshit is just a law that allows America to waste more money and borrow more money it can never pay essentially, that's what it is, thanks to the bipartisan votes of both sides of the hypocrisy spectrum. On one side the Republicans DEMAND spending cuts, even though when they were in power once upon a time they spent trillions on wars they never won, could not win, and that made things worse. Parties on both sides are money wasters, and countries are so good at taking (robbing) tax dollars from hard working people, you would think that a country should be able to self sustain and pay for all essentials with our bloody tax dollars and be self sufficient on their own in other areas.. Markets are not up because of debt - to be honest they don't two shits about it, what matters to markets are 1) the economy and jobs 2) Quarterly earnings. Markets are up because the option of wasting and borrowing more money is a better one than defaulting and not being able to pay the f****** bills
But this market rally is just a relief rally, markets are up mainly because of the strong jobs report on Friday, despite the Fed trying to undo Biden's mess, by raising interest rates to tame inflation, inflation remains too high, too hot and economy seems resilient, so markets like that because the prospect of a recession is less likely.
But as you probably know by now, what comes up must go back down
Right now it seems the market is pricing short term - there are still MANY issues, hot inflation is NOT good, it MUST come down eventually, the situation with this war in Ukraine, the situation with China and Taiwan, the situation with North Korea, and many other catalysts that can cause serious harm to the world economy in general, so yeah watch for markets to correct back down in the coming days - they will want to wait for the Fed's next interest rate move - if Fed raises interest rates, markets will remain volatile, if they will pause a hike, markets will rally. As long as quarterlies meet expectations and the banking sector fears are tamed, markets will be on the + side, but there is far more volatility ahead. Fed reserve must not back down raising rates - if they do they will make the same mistake as they did last time, and interest will skyrocket. We WILL need some sort of a recession, job loss and all and for people to spend less, in order to tame inflation, though it's very unlikely inflation will be tamed anytime soon, CERTAINLY not with this debt ceiling deal.
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USA made mistake, debt up just small amount
Recommend........Lift debt ceiling from 32 trillion to 999 trillion
The deal is to lift the CEILING to January 2025, but the whole deal is bullshit as Democrats will find clever ways to go around spending cuts - they can still pass bills to raise spending, as they always end up doing anyway, the whole deal is for show, making big empty promises just as an excuse to borrow more.
Oh yeah right now the real danger is Fitch downgrading credit rating, they have until September, and they could end up downgrading the credit rating just like it happened in 2011 with S&P, that sent markets down more than 6% and markets kept sliding for 6 months before recovery. I'd say a downgrade is a 50/50 at this point.
The fact that 2 parties were willing to let a country default like this, considering the ceiling was breached in January, and that they had all bloody year to negotiate, is enough solid argument to issue a downgrade, we'll see.
What keeps markets happy mainly is that public companies meet expectations - Markets rely on GREED - it doesn't matter that the government is spending money it does not have or people dying, as long as big tech companies are doing well and people are spending their money, no problem - the entire financial system of this world is bottom line only like every service industry out there, where the end-user don't mean shit
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Give 100 million for free to every American and Tasmanian
Spend all that money fast , this year and increase debt again 1000 fold
Do not bother to repay USA debt ever
Declare and conquer Planet Mars this year
Like a true Bernie Sanders supporters
Can you imagine had Bernie Sanders won, YIKES, he's one MESS, I think the situation would have been extremely worse - and I do believe Sanders is crazy enough to let the country default, he's that reckless, I think they should pass a law that if a President during his first term is unable to balance budget and creates too much debt past a certain threshold, he/she/it should be disqualified for a second term. There needs to be a law to disallow dimwits and incompetents to run a second time, this would be a service to the greater interest of the nation. This is how you tackle a problem, not debt ceiling bullshit, you don't just create a situation that encourages more borrowing and waste.
Did you listen to Biden's diatribe (speech) after he signed the agreement ? He cheered his efforts - what load of hot air, we all know this whole deal was signed, not for the better interest of Americans and the whole world - it all comes down to politics - if Biden would refuse to negotiate and accept some concessions, he would be the fall guy, there is no way he could secure a second term. On the flip side, had McCarthy kept the hard line and refused to negotiate and accept some concessions, it would look bad for Republicans and even his leadership. So both sides tried to squeeze the F'n lemon till the last minute and then made a deal, a deal that would only benefit each of their own political agenda.
Let's hope Republicans win a STRONG popular vote and regain FULL control of the house and senate, with majority, this way the whole world won't be subject to yet another show down between clowns. OR a strong Democrat party, with full control of senate and house in majoirty, this way they can keep on wasting money and spending and agree with each other, without opposition, either scenario is good
As to Trump, well, sadly, no longer a good candidate in my opinion, apparently he wanted to start a war with Iran, allegedly, and said clearly that he would allow the country to default in order to get what he wants............NOT GOOD............ and DeSantis ? (LOL!!!) no comment, so yeah looks like Americans are in for another 4 years of Biden (safest bet in my opinion if you want to get through to the next debt ceiling arguments
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