DJI 12,728.95 Up +157.04 +1.25% Really?.............
On the bright side, the NYT and Goldman Sachs may go broke. Wishful thinking, I know....
If it’s inevitable, just bring it on and get it over with.
Today, the market is preparing for doom with a pretty good opening hour rally (Dow up 210, S&P up almost 16). Flight to stocks?
If treasuries were sold off for pennies on the dollar due to a rating change (which I doubt will happen as the rating agencies are brought-and-paid-for poodles of the Treasury) then the dollar would massively devalue.
And 70% of USD are held as foreign assets.
So it’s not a good idea to ‘de-risk’ by holding fiat of any kind - including the CHF. It’s all colored paper.
Sensible funds would buy hard assets and precious metals.
And the dow is getting very close to 13,000??? Go figure.
It must be a suckers market? But then again, that is what I thought back when the dow was at 10,000.
Hedge funds, proprietary trading firms, and other nimble players would swoop in to buy the overly-cheap Treasuries. These players' risk management practices are far better than those of the large banks, which admittedly isn't saying much at all.
Mutual funds would sell off into the down market, destroying client capital and once again showing us what an utter scam the mutual fund industry is.
Upside: US government wouldn't be able to do any bailouts.
up 130 points this morning.
This morning, reports emerged from Europe that "selective default" was on the table for Greece.
A sovereign nation enters "selective default" when it elects to delay repayment of some of its financial obligations while fully honoring others.
This crap shoot called the market is just that. It is just kids playing roulette and when crap hits the fan the market will crash with America.
We are not going to default. This is just more pimping for their boy Obama. It will continue until or unless he determines there are more votes to be had by throwing them under the bus than by taking their money.
DJI 12,728.95 Up +157.04 +1.25% Really?.............
“Because nobody knows what is going to happen, nobody knows how to prepare.”
Food, water, ammo, fuel, batteries, TP, bag silver, etc. These boys need to check out prepper sites.
Cash and bonds? Rolled up and dipped into paraffin for use as fire starters, maybe. Weren’t these guys ever in the Scouts?
They have to keep the Dow up or they’ll lose all their government retiree voters (and eventual government retiree voters).
PING!!!
Not just banks. Large companies are stockpiling cash right now.
Expanding the debt limit means more Fed money propping up Wall Street, keeping the market safe for whatever elitists that are left to play with it.
Does this article have any legs or is it just the writer’s opinion? Are hedge funds making significant shifts to stockpile cash in anticipation? I’d appreciate some secondary corroboration from FReepers if they know about this. Thanks for posting it. - OB1
We will not default.
The US Treasury takes in roughly $200B/month. Figure about $51B for SSI and Medicare payments, about $6B for defense, about $30B in debt interest, and about $71B for all other essential services.
The “default” is a scare tactic that is being used by anyone concerned with their political career, rather than with what is best for America.