Tuesday, October 20, 2015

Panic over possible debt ceiling accident


At least some people think there is a small chance that they won't get paid right away for their expiring T-bills and are selling them at a discount.

When was the last time the 1-month notes were that high?  February 7, 2014. What happened then? A similar debate over raising the national debt limit.  Note that the debt limit was $17,226 billion then, and it is $18,152 billion now.  And soon it will jump a few hundred billion more as soon as Congress caves and approves a new ceiling.

See also: http://www.cnbc.com/2015/10/19/lew-i-worry-there-could-be-a-debt-limit-accident-that-could-be-terrible.html

Treasury Secretary Jack Lew said Monday he worries that waiting until the last minute to raise the nation's borrowing authority could result in an accident "that would be terrible."
Last week, Lew said the U.S. debt ceiling will be exhausted Nov. 3, two days before previously estimated. In a letter to congressional leaders, he added that a remaining cash balance of less than $30 billion would swiftly deplete.
"Our best estimate is November 3rd is when we'll exhaust what we call extraordinary measures; those are things we can do to manage things. I will run out of things that I can manage on November 3rd," Lew told CNBC's "Squawk Box."

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 Only 2 weeks until the system collapses! Unless the evil Republicans can be convinced to raise the debt ceiling. Are there negotiations going on? Nope, the president won't negotiate.

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