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woppa
2012 Jun 24, 10:43pm
If we do hit the ceiling before November it should make for some interesting events. And I think we will hit it in September at this rate.
FortWayne
2012 Jun 25, 12:46am
They'll strike a deal last minute, not without some significant drama. Both parties know that we need significant spending cuts, and both want to blame each other for any cuts that will occur... politics will be entertaining.
tdeloco
2012 Jun 25, 3:55am
They'll strike a deal last minute, not without some significant drama. Both parties know that we need significant spending cuts, and both want to blame each other for any cuts that will occur... politics will be entertaining.
Exactly. In the nick of time, a deal will be struck, and the politicians have saved the day.
But what about QE3? All I'm saying is that there's no room for QE3 at this time.
For some reason, the market was expecting the next QE last Wednesday the 20th of June. That puzzles me since we're so close to the debt ceiling, there's no room for a QE. At the time of this writing, the debt clock is at $15.81T, and the debt ceiling is at $16.39. That gives us less than a hundred billion a month from now until the end of the year.
Don't get me wrong. I think we'll simply raise the debt ceiling. And no, we won't default, at least not anytime soon. And if we do, it probably won't be an honest default.
All I'm saying is that there is no room for QE3... at least, not until after congress had increased the debt ceiling. Bernanke has no power over that.