Thread: Debt ceiling

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  1. #1
    Electrical/Wiring/Trolling Motors Moderator CatFan's Avatar
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    Debt ceiling

    Please do not make this political. It’s certainly about politics, but surely adults can keep it sane!

    Anyone else worried about political contentiousness leading to inaction on increasing the debt limit?

    I’m concerned enough I retreated to cash on most of my more speculative positions, booked some losses that seemed unlikely to recover and pocketed some gains that seemed vulnerable.

    If an agreement can’t be reached, I think the market might react negatively to the bad vibes.
    If you have integrity, nothing else matters. If you don't have integrity,
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  2. Member
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    #2
    If the government were to default on the debt, wouldn’t that affect the value of our currency? Is there a place to hide?

  3. Member
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    #3
    It's not a matter of "if" but "when."
    This plan was put together years ago and initiated on January 20, 2009.
    I don't think hoarding money and stocks is going to help either, you need personal protection,
    somewhere to grow your own food and a clean water supply.

  4. Electrical/Wiring/Trolling Motors Moderator CatFan's Avatar
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    #4
    Quote Originally Posted by Bassin08 View Post
    If the government were to default on the debt, wouldn’t that affect the value of our currency? Is there a place to hide?
    Not necessarily to default, but the apparent inability to act together to prevent it.
    If you have integrity, nothing else matters. If you don't have integrity,
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    #5
    I would think the yields on Treasuries would climb as their prices fall if there becomes a real fear that payments may be missed.

  6. Electrical/Wiring/Trolling Motors Moderator CatFan's Avatar
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    #6
    Quote Originally Posted by NitroZ7 View Post
    I would think the yields on Treasuries would climb as their prices fall if there becomes a real fear that payments may be missed.
    So would I.
    If you have integrity, nothing else matters. If you don't have integrity,
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  7. Member
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    #7
    Quote Originally Posted by CatFan View Post
    So would I.
    I hope we get a good scare. If the long term treasury bonds drop I am going to pick up a good amount. There is a good chance we see a recession and the fed cutting by the end of the year. I would love to lock in higher rates for a long time for a piece of my portfolio. I sold some puts on TLT that expire this Friday and would love to see the prices drop to lock in some yield for long term.

  8. Stocks/Investments Moderator boneil's Avatar
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    #8
    The debt ceiling is one of those things that unites more than it divides. The fear of ramifications from not fulfilling our debt obligations is a powerful one. Neither side wants to be blamed, we'll get grand standing, and plenty of can kicking. The Treasury will do fuzzy math and in worst case scenario my guess is the Federal Reserve does something. It wouldn't surprise me if they eliminated the debt ceiling OR made a law giving the Federal Reserve more power to handle it. They love not taking responsibility.

    I'm not sure anyone really knows what would happen if they delayed raising it for a day, a week, or longer.
    Thanos was the hero

  9. Electrical/Wiring/Trolling Motors Moderator CatFan's Avatar
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    #9
    News last night makes it sound like there is very little chance of it being raised. I'm going to consider retreating more tomorrow. Sounds very serious.
    If you have integrity, nothing else matters. If you don't have integrity,
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  10. Member
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    #10
    Birds of a feather flock together. The two parties will make sure they negotiate some wins and then agree to an increase. Just gonna stretch it out to the last minute to each get what they want.

  11. Electrical/Wiring/Trolling Motors Moderator CatFan's Avatar
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    #11
    Quote Originally Posted by Landar View Post
    Birds of a feather flock together. The two parties will make sure they negotiate some wins and then agree to an increase. Just gonna stretch it out to the last minute to each get what they want.
    Not sounding like that. There is a list of major demands that isn’t going to be accepted even scaled down by 10. Treasury is planning for the worst. They are thinking SS, Medicare, debt interest and uniformed Defense might be funded for a while, but little else. Apparently promises were made as part of the Speaker voting. Insiders say it’s going to be far more acrimonious than usual.
    If you have integrity, nothing else matters. If you don't have integrity,
    nothing else matters.​