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POLL on Debt Ceiling



July 12, 2011 – Comments (14)

Just curious what others think.  Does it go passed August 2 or not?

I say no, mainly because Republicans will probably get hurt more should the stock market drop 2000 points in open hours on Agust 3.  Now that would be one great buying opportunity too.

14 Comments – Post Your Own

#1) On July 12, 2011 at 8:05 PM, kdakota630 (29.10) wrote:

They'll raise the debt limit near the deadline and both sides will claim victory.

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#2) On July 12, 2011 at 8:52 PM, dbjella (< 20) wrote:


What would you think that does to the price of precious metals? 

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#3) On July 12, 2011 at 11:48 PM, awallejr (35.81) wrote:

I am not so sure about that now Kdakota, Republicans kind of painted themselves into a corner.  They know they have to raise it, but if they stay stubborn for too long things might get more volatile.

And dbjella it probably will make them rise.

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#4) On July 13, 2011 at 3:26 AM, DarthMaul09 (29.07) wrote:

Even if the debt ceiling is not passed by the Congress, I would guess that President Obama would sign an executive order to increase the debt ceiling.  There would then be a court challenge to determine if this was legal, which may take one to two years to determine the outcome.  In the mean time, the Congress, Treasury and Fed would have to assume that the President is within his powers to authorize this, which would clear the way for QE3 to begin.  The Tea Party wing of the Republican party would save face, while the President would also shore up support from his base.  A political win-win, which for the US savers and the real economy turns into a lose-lose. 

The recent gains in the precious metals also suggests that these investors are betting on another increase in the debt ceiling and following that another round of QE provided by the Fed.  This will of course ensure that the TBTF bankers will have enough money to employ Geithner and Bernanke, when the dynamic duo's  work for the government is done.


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#5) On July 13, 2011 at 9:03 AM, Schmacko (92.65) wrote:

It'll be raised.  This is all political posturing.

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#6) On July 13, 2011 at 11:45 AM, edwjm (99.90) wrote:

If a building collapses on you, is your first thought to take an asperin?  Or is it to get out from under whatever is crushing you? 


Raise the debt ceiling first, then fix the imbalance between revenue and spending.  It can be done.  It was done during the Clinton administration.  BOTH parties have been wreckless with spending.  BOTH parties cater to their special interests.  All politicians put the own re-election ahead to the national good.  The question becomes which party (if any) is willing to face the situation more honestly and with less political posturing?

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#7) On July 13, 2011 at 12:47 PM, smartmuffin (< 20) wrote:

"It was done during the Clinton administration"

 Not really.

 Anyway, yes, there will be a deal.  The Democrats will do what they did to Reagan, use the left-wing mainstream media machine to scare Republicans into thinking the public will hold ONLY Republicans responsible if no deal is reached.  They will promise "Let's just raise the debt ceiling and raise taxes RIGHT NOW and don't worry, we'll cut spending in the future.  We swear."

And then they won't.  Yawn.  Wake me when something changes.

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#8) On July 13, 2011 at 12:59 PM, edwjm (99.90) wrote:

OK.  I admit I didn't do my homework on the Clinton reference, but the point of my post remains:  The imbalance can be fixed.  The question is, "Who is willing to fix it without considering how it will alter re-election chances?"   Who will put the national good above political posturing?



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#9) On July 13, 2011 at 1:25 PM, miteycasey (28.99) wrote:

political will get raised.

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#10) On July 13, 2011 at 1:57 PM, leohaas (29.98) wrote:

This is a game of chicken they are playing with the economy. Shame of both sides.

I don't think the DOW will drop 2000 points on 8/3 if no deal is reached. But I will be short (a part of) the market (probably through FAZ) when that day arrives, just in case.

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#11) On July 13, 2011 at 2:00 PM, whereaminow (< 20) wrote:

80 times in a row.

Who in their right mind would bet against 81?

David in Qatar

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#12) On July 13, 2011 at 2:06 PM, TMFBlacknGold (91.00) wrote:

Sad thing is neither "base" is correct. We need to raise taxes/reform the tax system, which flies in the face of Republicans. We also need to ammend Social Security, Medicare, pension programs, and government spending, which flies in the face of Democrats.

 Why don't they just open a vote to the American people? A recent poll suggested an overwhelming number of people supported raising taxes to cutting education funding. Politicians repeatedly do the exact opposite. smh...

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#13) On July 14, 2011 at 12:46 AM, awallejr (35.81) wrote:

What is bothering me is the stubborness of the Republicans.  How can you negotiate when one side keeps saying no?  This really is becoming a "self inflicted" black swan that needs not  happen.  But push it to the brink and you can see serious repercussions.

I wish the Republicans would simply cut the crap.  I don't appreciate their trying to play brinksmanship.  Either compromise, which is the nature of democracy, or keep the two issues separate.

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#14) On July 14, 2011 at 12:55 PM, TMFBlacknGold (91.00) wrote:

Yeah you're right on. While some Democrats openly oppose Obama's push to reform entitlement programs, I don't see them derailing the whole thing. Republicans on the other hand seem are just absolutely unwilling to compromise. They know if they do work out a deal, Obama will most likely get re-elected. The way I look at it though, Republicans don't have a strong front-runner to challenge Obama anyway.

Why must politicians only care about getting elected? Who cares if a Democrat or Republican is president, as long as they do what is right for the country during their term?

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