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Debt limit?

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January 06, 2011 – Comments (11)

http://finance.yahoo.com/news/Geithner-says-US-could-hit-rb-620390769.html?x=0&sec=topStories&pos=main&asset=&ccode=

 

This is really scary to me, but I don't know much about it. How big a deal is it?

11 Comments – Post Your Own

#1) On January 06, 2011 at 11:41 AM, leohaas (32.29) wrote:

A real big deal indeed.

First, politically. If the ceiling is not raised, that means the Tea Party is very powerful. If the ceiling is raised, we'd have a 'busines-as-usual' Congress. In other words, a not so powerful Tea Party.

Second, economically. The big fear is that not raising the limit would cause the Federal Government to default, resulting is a collapse of the economy. I am not sure how realistic this fear is, but am convinced that it will result in raising the limit in the end.

Just to be on the safe side, I'll go long FAZ before the bleep hits the fan...

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#2) On January 06, 2011 at 11:48 AM, JaysRage (89.06) wrote:

I don't see it as a major issue.   The debt ceiling has been raised several times in recent history.   Hopefully some meaningful discussions will occur on deficit and debt reduction as a part of increasing the ceiling, but it is a political death sentence not to let the government continue to function.   It will be raised.  

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#3) On January 06, 2011 at 12:03 PM, Valyooo (99.43) wrote:

I figured, I just haven't been in the finance game long enough...I didn't even know there was a debt ceiling.

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#4) On January 06, 2011 at 12:23 PM, TigerPackFund (< 20) wrote:

Reagan shut down the government several times to get his point across about budget spending and priorities with the Deomcratically controlled Congress with his Presidential veto power.  I believe House Speaker Gingrich got close to not raising the debt ceiling once - my memory may be fuzzy on that one.

The House of Representatives is now much more "representative" of the people's feelings on the out-of-control deficit, socialist agenda on this issue and has every RIGHT and expectation from the people of this great land to decide appropriate spending and deficit levels.

According to the U.S. Constitution, which nobody reads or follows anymore, the HOUSE has the sole responsiblity to propose federal budgets and fund them.  NOT the President or the Senate, or the FED; it is the job of the people's HOUSE to do so such. 

We will now see if the Repooplicans are serious about saving American's long-term future, or flushing it down the drain with business as usual, free money spending for all!

-TigerPack

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#5) On January 06, 2011 at 12:28 PM, TigerPackFund (< 20) wrote:

I fear the current set of Repooplicans are not up for the challenge, as they are mostly paid off hacks, cowards and plain old hypocrites.

Anyone trusting their children's future to a guy named Boner is asking for trouble, in my humble opinion.   Real courage and foresight is sorely lacking in this once great land.

That's my two cents anyway.

-TigerPack

 

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#6) On January 06, 2011 at 12:52 PM, ETFsRule (99.94) wrote:

Not a big deal, but it'll probably result in some additional political posturing, by both sides, over the next 3 months. In other words, no change at all.

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#7) On January 06, 2011 at 1:26 PM, Harold71 (22.90) wrote:

On January 06, 2011 at 12:23 PM, TigerPackFund (91.76) wrote:

According to the U.S. Constitution, which nobody reads or follows anymore...

 

Hmm...someone heard you.

U.S. Constitution is read in House

 

 

I fear the current set of Repooplicans are not up for the challenge, as they are mostly paid off hacks, cowards and plain old hypocrites. 

And you can throw DemocRats in there as well.  Both parties throw America's long-term future under the bus to win the next election. 

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#8) On January 06, 2011 at 1:31 PM, davejh23 (< 20) wrote:

I agree that it would be a very big deal if the Republicans stick to their guns, but there's no way that they won't cave.  I would say the worst case scenario would be Congress only agreeing to raise the debt ceiling by a few hundred billion, so that another vote is required later this year.  They may demand that spending be cut $100 billion this year...not enough to require significant changes in federal spending and not enough to put us on a sustainable path.  Based on currect CBO projections through 2020, we'll likely see at least 1 debt ceiling increase a year for the next 10 years.  I believe we'll see a crisis of confidence and spike in interest rates first that will make lowering the national debt the number one priority...

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#9) On January 06, 2011 at 1:53 PM, Harold71 (22.90) wrote:

Some of the highest rated comments on the yahoo news story on the debt limit:

 

http://finance.yahoo.com/news/Geithner-says-US-could-hit-rb-620390769.html

 

Does anyone else think this is kind of absurd? If you raise the debt limit simply because you are getting close to it, what is the point of a debt limit at all? You might as well completely eliminate it instead of pretending there should be a limit. 

 

If we can not, as a nation, live within our income; then we need to default and be forced to cut our expenses. Tough love is sometimes best for everyone.

 

So we just keep raising the limit. Add to the debt. Which takes us to what?

I am curious as to how long politicians can kick the can down the road.

 

 

Dear Timmy G, When I advise my clients, who are likewise out of money, I advise them to bring in additional income however possible, and to reduce their expenses. I strongly advise you to do the same. Constantly increasing our debt does not help us at all. What the US needs is an austerity plan of unprecedented proportions.

 

Geithner fits in well with the rest of the idiots in government. CUT SPENDING you numb nuts.

 

Insanity-"doing the same things over and over again expecting different results"

 

Why should congress raise the debt ceiling? Just eliminate it altogether.  Whats the point in having limits if your not going to live by them?
USA FUBAR

 

Geithner is a crook along with his buddies at Goldman Sachs - Paulson, Kashkari and the rest of the dirty bankers. What a joke, raise the debt ceiling, who f*&^*ucking cares. The Federal government is corrupt. How about Lloyd Blancfein return the hundreds of millions in bonus money to the U.S. Treasury? How about putting in jail Neel T. Kashkari, Henry Paulson, Ben Bernanke and all the other Federal Reservists and make them pay back this so-called debt. Debt to who? Jackson, Lincoln, Lindberg and Kennedy went up against them. Its time to dissolve the Federal Reserve and put the bankers in jail.

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#10) On January 06, 2011 at 10:14 PM, TigerPackFund (< 20) wrote:

For the record, the proper math given a slowing economy later in 2011, brings a $1.5-$2.0 trillion deficit for fiscal 2011, with the federal government's fiscal year ending October.

$100 billion represents about 6% of the budget deficit and 3% of the total budget.  Repooblicans have no idea what they are up against or the MASSIVE changes in terms of tax INCREASES and spending cuts to Defense and Social Security now required to prevent a Treasury credit downgrade and the potential of default on our obligations the next few years.

-Tiger's Two Cents

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#11) On January 06, 2011 at 10:32 PM, soycapital (< 20) wrote:

"We will now see if the Repooplicans are serious about saving American's long-term future, or flushing it down the drain with business as usual, free money spending for all!"

I'm sorry to report that the Repooplicans (lol) are as serious about saving America's long-term future as the Democraps are. Not one iota, all they want to do is bring the bacon $$$$ back home for more votes next election. Get used to it! That is the way it has been and will be until we wise up and get serious about electing good, trustworthy individuals as our representatives. Either that or get out the pitchforks and take back our country from the slime. (sorry, been a long day) But on the other hand we get what we deserve by sitting on our butt and talking about it instead of actually doing something about it.

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