Author Topic: Treasury warns default could be worse than Great Recession  (Read 436 times)

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Online mystery-ak

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Treasury warns default could be worse than Great Recession
« on: October 03, 2013, 01:35:47 PM »

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Offline andy58-in-nh

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Re: Treasury warns default could be worse than Great Recession
« Reply #1 on: October 03, 2013, 01:55:43 PM »
There is not going to be a default, no matter what. The debt ceiling will be raised, as both parties know it must. The only variables are: by how much and for how long.

The Treasury Deartment, acting in concert with the Administration of which it is a part, is trying to spook the financial markets, and perversely speaking, with good reason.

Treasury needs authority to issue more debt, which will then be sold to primary dealers, before being flipped back to the Federal Reserve in exchange for cash that will end up... in the stock market.

Because the only remaining buttress for equity prices is a steady supply of Federal Heroin.

In a near zero-interest rate regime where the Fed now owns more than a third of America's debt (and where no one else is buying, long-term), the markets no longer move based on corporate fundamentals or on technical signals, but on whatever words emanate from Ben Bernanke's mouth.

It won't end well, at all. But it won't end just now.
Liberalism isn't really about making the world a better place. It's about reassuring the elites that they are good people for wanting to rule over it.

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Re: Treasury warns default could be worse than Great Recession
« Reply #2 on: October 03, 2013, 04:06:31 PM »
On the count of three please don your helmets, as the sky - in fact - is falling.
Uno, dos ...
A day without sunshine is like, you know, night.


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