US Debt Ceiling Talks Update: When Asian Markets Open…25 July, 2011, 1:47. Posted by Zarathustra
Tags: Debt Ceiling, Debt Crisis, Economy, United States
Within 9 days, the calendar will turn to 2 August, in which the United States will have exhausted all its authority to sell debts should the debt ceiling not raised by then. Then the US government would be in a default (selective default? restrictive default? whatever).
We have a little bit less than 9 days left for the incompetent politicians in Washington (including a bunch of rightwing nutters, as Vince Cable put it) to sort out the debt ceiling deal, or to risk a default of the United States government. To allow time to draft the bill and to pass the House and Senate, if they can’t come up with a deal within a few hours, they might well get to 2 August without any deal at all.
So politicians now believe that they should come up with a deal by Asian market open so that they won’t scare the hell out of us in Asia. Of course, judging from my conversations with investors, traders, and analysts, no one seemed to be bothered as of Saturday night. In fact, if politicians didn’t say this, probably no one except me and a few in Asia care. But since they raised the prospect of potentially scaring us if they don’t get a deal done in a few hours, probably a few more would care.
More to follow…
Latest: A deal is not likely within a few hours, but the deadline will be a day later via Lisa Desjardins
Update: The Talks broke down again!