No debt-limit deal? Your investments plummet

[Skip_In_Boulder]

BOSTON (MarketWatch ) — It’s no joke. The sky over the investment world and everything under it, including bonds, stocks, money markets, commodities, you name it, will fall unless lawmakers raise the $14.3 trillion Federal debt ceiling by Aug. 2.

It could be nothing less than catastrophic and worse than the financial meltdown of the late 2000s should Uncle Sam fail to raise the legal limit on government borrowing and default on U.S. debt, according to Greg McBride, a CFA charterholder and senior analyst with BankRate.com. “There will be no safe haven,” said McBride, from his perch in Florida.

In a press conference Monday, President Obama called for compromise as party leaders seek to craft a deal that raises the legal limit on how much the U.S. government can borrow while slashing projected deficits over the next decade. Democratic and Republican leaders held talks Sunday, but discussions broke down over taxes.

Obama said he would keep convening with party leaders every day until a debt-limit deal is reached. He also said he would reject a stopgap measure of 180 days or less. Congress has to raise the federal government’s legal debt limit by Aug. 2 or the nation could be in danger of defaulting on its debt, Treasury Secretary Timothy Geithner has said. A U.S. default could put the economy back into recession and create panic in global financial markets.

http://www.marketwatch.com/story/no-debt-limit-deal-your-investments-plummet-2011-07-12

[RUMMYisFROSTED]

1. Because we're all big investors.

:think:

[democrat_patriot]

2. Soooo - my 401K will than buy at really low rates

and when it rebounds I'll make more money? When they drop we should buy buy buy? Buy low sell high right?


Suck for people retired/retiring who need their investments at a nice level.

[LiberalEsto]

5. Imagine if Social Security was replaced

by private investments. Screwed seniors starving on the streets. Business as usual.

[Doctor_J]

3. Another Big Media "You better vote Repuke" lie

We're going into a 2nd dip anyway, because of the ridiculous giveaways already conceded.

[Skip_In_Boulder]

9. How could you possible come to the conclusion

that this is a Republican talking point?

The article pointedly states in the first paragraph that;

The sky over the investment world and everything under it, including bonds, stocks, money markets, commodities, you name it, will fall unless lawmakers raise the $14.3 trillion Federal debt ceiling by Aug. 2.

It is clearly focused on one issue, the debt limit, it makes no reference to raising taxes or reducing spending in this paragraph. It is clearly the Republicans who are refusing to raise the debt limit. So how is that a Republican talking point?

And what is about liberals here at DU, do they just not understand how the financial markets interlock with about everything in the world that makes it go round? Do they think that since they do not have an investment portfolio that changes in the markets don't effect them or the economy in which they function?

[LiberalEsto]

4. Our investments?

:rofl: :rofl: :rofl:

What investments?

My husband, who used to work for Fannie Mae, watched all his employe stock ownership plan investments vanish overnight a few years ago. His loss came to at least $45,000, and it was not a tax-deductible loss. It was basically all we had for retirement.

The Fannie Mae big shots, who were Bush appointees, got wind that Fannie's stock was about to drop, and sent emails to all the company's lower-ranked employees ordering them NOT to sell any of their Fannie Mae stock.

Then they dumped their own stock at good prices, screwing everybody else from Fannie Mae when the stock promptly plummeted in value. Some people lost as much as $1 million, which was part of their compensation for many years of hard work.

It angers me that Dan Mudd and the other bastards aren't in jail.

[RUMMYisFROSTED]

7. +1

[RKP5637]

6. I'm not speaking of your post in particularly, but I'm tired of all of the theatrics

in getting this accomplished. No surprises, but I find our gov. incompetent, and this is not an Obama bash. If most of these guys had to work in the private sector they would have been fired by now for incompetence.

It's the SOS over and over again. R vs. D, L vs. R, there is soooo much gridlock, arguing and theatrics in the real work-a-day world these guys would have been dismissed long ago. It gets to be entertainment for the masses, and in the final analysis the US is not going to default. These guys have got their own $$$ at risk and they're not going to do squat that's going to lose them a buck.

[RUMMYisFROSTED]

8. "...and in the final analyses the US is not going to default."

Yep. The One-Party-System will fold in upon itself to reach the already agreed upon resolution.

:think:



Wake up!

[RKP5637]

11. Yep, exactly! The games are for our benefit, yet another spectator sport. n/t

[eilen]

10. So basically the wealthy will ensure the debt limit bill will pass.

One thing we can all bank on is the greed of the 1%

[RKP5637]

12. Yep, it'll be business as usual. The 1% are not going to let these guys F up

their gravy train. These guys are like cartoon characters, the real wealth of this country holds the power, pulls the strings and makes the decisions. Politicians come and go, the real wealth remains, holds the power and is often party neutral as long as they are making the bucks.