This is what I'm worried about re: debt limit negotiations...

[Raven]

If this political positioning continues I'm going to start seriously thinking about moving my money out of the market into a safer place. I've given myself until about the 15th to make that decision. I think there may be many people thinking the same thing and we may start seeing the effects of this well before the August 2 deadline. If the Republicans continue to throw temper tantrums, they may bring on a crisis sooner than later and the question of raising the debt limit may become moot.

[no_hypocrisy]

1. Unspoken, I'm pretty sure there are others who are quietly moving their money.

Or some of it.

[PoliticAverse]

2. Move it into T-Bills, those are considered extremely safe. (oops, nevermind). n/t

[northoftheborder]

3. I'm worried about what to do also. In addition to that....

....I despise all this behind the scenes bargaining. I want to know what was or is "on the table" from both sides.

[KharmaTrain]

4. Hedging Higher Interest Rates...

That's what smart money is prepared to do. The market has been one of the few places to get more "bang" for your buck as low interest rates have depressed the bond market. Should the U.S. default and interest rates begin to rise watch money head to those bond markets as we see a replay of the late 70s. The affects on small business could be more severe as already tight credit will be compounded by higher lending rates. The end game is to destroy the U.S. economy to bring down this administration while shelter the big money...letting the little guys take the hit.

[KittyWampus]

6. That's why I think they will push us into debt default. In their minds, it makes them look

tough and has the end result of siphoning even more money out of the working class.

And I sincerely wish you'd do an OP just as you've posted here. Some DU'ers still seem to be laboring under the delusion the Republicans won't do this because Wall Street wouldn't profit.

The big players on Wall Street pretty much always come out ahead or at least in a position to take advantage of conditions.

[KharmaTrain]

8. Economic Naviete...

...and it can be understood as many here are struggling to pay the bills and not tuned into how the "other half" lives. We live in that "global economy" Bill Clinton crowed about in the 90s and one of the consequences is the corporates have no allegiance to this country any longer. All that matters is profit. If they can make it in Europe or China, that's where they'll go. If given the chance to offshore their money or jobs, they have so that if the American economy goes to hell they think they're pretty well sheltered.

I'm cynical enough to believe that we're seeing a game of deliberate brinksmanship where the prospect of a near default send the markets on a wild ride for a couple weeks that will allow the speculators to have a field day...then at the last minute see this administration give in far more than it will get...and claiming victory that the whole 4 trillion wasn't cut.

THank you for your kind words. I used to do OPs but they sank faster than a rock. There've been several good posts here about those who can and will benefit from a default (or are positioning themselves to do it). If people want to ignore, they do so at their own peril.

Cheers...

[thecrow]

5. My thoughts exactly but

PM me on the day to move it.

I have lots of stocks that I bought extremely low...(like Google at $106) Wouldn't it be advantageous to simply let them be and wait for the market to move up again instead of contributing to the stock market's crash?

[Raven]

7. You raise a good question. I don't know the answer but I think

it may completely depend on your age and financial position. If you can afford to wait the market out, it may be a good idea to sit tight. For a older person depending on income from investments it may not be a good idea.

[pscot]

9. Or you could follow Eric Cantor's lead

and short treasuries. If interest rates rise as a result of the Republican default, you'll make a killing.