U.S. Debt Ceiling

The Roof Has Been Raised: $16.4 Trillion Debt Ceiling

by

Well, it’s looking like  the Senate was unable to muster enough votes to reject the newest debt ceiling hike in a 52 to 44 vote.  Due to take effect this Friday, we will be looking at a new ceiling of $16.4 trillion with our current levels reaching the $15.4 trillion mark. From Zerohedge: “Since roughly $100 billion was plundered from Pension Funds in the past month, The US will have about $15.4 trillion in debt with the Monday DTS. The question then is how long will the $1 trillion in debt capacity last: at $125 billion/month it won’t be enough … Read more

‘s Failure to Panic

by

I just got off the phone with a source on Capitol Hill who has spent the past few days trying to convince Republicans to vote for a debt ceiling hike. He told me that the biggest obstacle he faces has been “market complacency.” “Frankly, a bit of panic would be very helpful right now,” he said. As he explained it, lots of people in Washington, D.C., expected that this would be a week marked by panic in the markets. Stocks would tank. Bonds would get clobbered. The dollar would do something dramatic. And all of this would help convince reluctant … Read more

Buffett Ready To Bid Debt Ceiling Adieu

by

Provided by Yahoo! Finance   Legendary investor Warren Buffett said the U.S. should do away with the debt ceiling, the issue that has recently roiled global equity markets as speculation has intensified that if Congress does not raise the debt ceiling, the “AAA” credit rating held by the U.S. for almost 90 years could be in danger. Buffett wasn’t the first to float the idea of nixing the debt ceiling. Moody’s Investors Service’s did the same in a report published on Monday. Buffett’s Berkshire Hathaway is exposed to the U.S. economy through its equity investments, so it’s not surprising Buffett … Read more

Treasury Confirms Debt Ceiling Will Be Breached Today

by

It’s official, the U.S. is expected to reach the legal limit on its debt later on Monday and will start dipping into federal retirement funds to give the country more room to borrow, a Treasury official said. According to Reuters, the U.S. Treasury will settle $72 billion in maturing bonds today, which will push the country right up against its $14.294 trillion borrowing cap.  Check out this letter from Geithner… The Honorable Harry Reid Democratic Leader United States Senate Washington, DC 20510 Dear Mr. Leader: I am writing to notify you, as required under 5 U.S.C. § 8348(l)(2), of my … Read more