Since 1960 the debt limit was raised as much as 78 times! Every time it is raised by a nominal value (eg, $ 500 billion) - about as much debt can increase the nominal bond counting. It would seem, therefore, that 79 time, there will be specially stressed markets.
However, it is worth remembering that two years ago it was the subject of the debt limit began with a mini-crash, in which the U.S. credit rating from S & P has downgraded to AA +. This time it seems that there is a serious threat from the agency, but time is short. Officially the government because the money runs out Oct. 1, and so for weeks. Republicans want a solution that would reduce funding for the project on President Obama's health care services and would provide financing to mid-December. But Obama said during a telephone conversation with the leader of the Republicans in Congress that it will not negotiate on this issue.
However, it is worth remembering that two years ago it was the subject of the debt limit began with a mini-crash, in which the U.S. credit rating from S & P has downgraded to AA +. This time it seems that there is a serious threat from the agency, but time is short. Officially the government because the money runs out Oct. 1, and so for weeks. Republicans want a solution that would reduce funding for the project on President Obama's health care services and would provide financing to mid-December. But Obama said during a telephone conversation with the leader of the Republicans in Congress that it will not negotiate on this issue.
For now, these are the verbal scuffle - Democrats are trying to portray the opposition as irresponsible and exposing the country to return and market crisis. However, if the matter in the coming days will not go forward (and American politicians have become accustomed us to the decision at the last minute).
WSJ about costs do not increase the debt limit:
Estimating on the basis of two cases cut off the money the administration in the mid 90's, the cost to the economy of the Office of the Budget would be $ 2 billion. It seems that the scale of the U.S. GDP is not much, but the newspaper notes that many of the costs were not included in this calculation. Moreover, he cites the calculation of Goldman Sachs, according to which both in the 90's and in the 2011 budget uncertainty to household sentiment deteriorated more than in the other factors (such as labor market and house prices).
Estimating on the basis of two cases cut off the money the administration in the mid 90's, the cost to the economy of the Office of the Budget would be $ 2 billion. It seems that the scale of the U.S. GDP is not much, but the newspaper notes that many of the costs were not included in this calculation. Moreover, he cites the calculation of Goldman Sachs, according to which both in the 90's and in the 2011 budget uncertainty to household sentiment deteriorated more than in the other factors (such as labor market and house prices).
Technical situation on the SP500 Index:
Now we observed a correction started on Friday (20th Sept.) the SP500 Index. Reach the target is 1660 points on the futures contract.
regards,
oscarjp
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