Author Topic: Raising the Debt Ceiling - Discussion Thread  (Read 6031 times)

Offline AsherO

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Raising the Debt Ceiling - Discussion Thread
« on: July 27, 2011, 10:42:39 AM »
What do you guys at DDF think about this saga?
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Offline elikay

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Re: Raising the Debt Ceiling - Discussion Thread
« Reply #1 on: July 27, 2011, 11:00:39 AM »
Buy the rumor sell the news. Buy now sell next week (the markets will rally in the end).

Offline AsherO

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Re: Raising the Debt Ceiling - Discussion Thread
« Reply #2 on: July 27, 2011, 11:11:41 AM »
Buy the rumor sell the news. Buy now sell next week (the markets will rally in the end).

Probably. If the government will go bankrupt we'll be broke anyway. Heck, even if the government doesn't go bankrupt we still have tons to worry about economically.
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Offline mercaz1

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Re: Raising the Debt Ceiling - Discussion Thread
« Reply #3 on: July 27, 2011, 11:18:04 AM »
i think that if the govt does default on anything then we are going to be in big trouble

Offline Dan

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Re: Raising the Debt Ceiling - Discussion Thread
« Reply #4 on: July 27, 2011, 11:35:54 AM »
Anyone buying foreign currency with their dollars yet?
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Offline myb821

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Re: Raising the Debt Ceiling - Discussion Thread
« Reply #5 on: July 27, 2011, 11:36:59 AM »
Anyone buying foreign currency with their dollars yet?
lol at this point i would think abt buying gold just till next week to see what happens

Offline AsherO

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Re: Raising the Debt Ceiling - Discussion Thread
« Reply #6 on: July 27, 2011, 11:44:47 AM »
lol at this point i would think abt buying gold just till next week to see what happens

I wouldn't buy gold because as soon as they come out with a deal all the recent increases will drop and you'll end up losing (or at best breaking even).

I think the people betting on a default will lose for one reason: If the govt. defaults we're in deep $#!& anyway, so whatever windfall they get will be worth much less.

Betting against the default is much safer, since if you've lost the bet you're in the same screwed situation as everyone else.
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Offline mercaz1

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Re: Raising the Debt Ceiling - Discussion Thread
« Reply #7 on: July 27, 2011, 11:47:18 AM »
i think the smart play here is to stop playing either side and keep your money in a savings account until next week and see how this plays out

Offline AsherO

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Re: Raising the Debt Ceiling - Discussion Thread
« Reply #8 on: July 27, 2011, 11:54:06 AM »
i think the smart play here is to stop playing either side and keep your money in a savings account until next week and see how this plays out

But then if the govt defaults you're holding worthless (or at least worth less) money.

What do you guys think of buying a commodity that hasn't gone up much recently, this way if the govt raises the debt ceiling you can sell at little or no loss, and if they default (ostensibly) what you bought will go protect you against the Dollar's devaluation.
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Offline myb821

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Re: Raising the Debt Ceiling - Discussion Thread
« Reply #9 on: July 27, 2011, 11:57:23 AM »
But then if the govt defaults you're holding worthless (or at least worth less) money.

What do you guys think of buying a commodity that hasn't gone up much recently, this way if the govt raises the debt ceiling you can sell at little or no loss, and if they default (ostensibly) what you bought will go protect you against the Dollar's devaluation.
like what?

Offline mercaz1

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Re: Raising the Debt Ceiling - Discussion Thread
« Reply #10 on: July 27, 2011, 12:00:38 PM »
not a bad idea, but there is no guarantee that the commodity will go up if they default while putting it into a savings account will at least protect you from losing money in the commodity goes down. i realize thatthe dollar will be devalued but that would happen regardless

Offline Bh101

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Re: Raising the Debt Ceiling - Discussion Thread
« Reply #11 on: July 27, 2011, 12:04:03 PM »
im just curious, do u think that the government will actually default on their loans? wen it comes down to it they'll just raise the debt ceiling like they did every other time we got into this situation...........a solution to this would be for America to stop supporting other countries with money they dont have, forget about obama and all his domestic cuts. stop giving away hundreds of billions of dollars a year to random countries..........sorry just venting a bit, obama just gets on my nerves

Offline mercaz1

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Re: Raising the Debt Ceiling - Discussion Thread
« Reply #12 on: July 27, 2011, 12:05:47 PM »
its a good point. if we cut our foriegn aid for just a week it would probably go a long way to helping us get out budget in order

Offline AsherO

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Re: Raising the Debt Ceiling - Discussion Thread
« Reply #13 on: July 27, 2011, 12:06:19 PM »
like what?

You're right. Even the traditionally less volatile stocks aren't stable. There's been a significant rise in prices over the past few months, and I think it's not just because of the debt-ceiling situation.

not a bad idea, but there is no guarantee that the commodity will go up if they default while putting it into a savings account will at least protect you from losing money in the commodity goes down. i realize thatthe dollar will be devalued but that would happen regardless

If the govt defaults everything will rise sharply as the Dollar devalues. The Dollar will devalue at a much faster rate than if they make a deal, that's just normal inflation (which at present interest rates is slowly eating away at your savings).

its a good point. if we cut our foriegn aid for just a week it would probably go a long way to helping us get out budget in order

If we cut our foreign aid we're doomed, foreign aid is our way of bribing the world so they look the other way regarding our consumption (and a bunch of other things).
« Last Edit: July 27, 2011, 12:10:51 PM by AsherO »
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Offline Dan

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Re: Raising the Debt Ceiling - Discussion Thread
« Reply #14 on: July 27, 2011, 12:29:27 PM »
If we cut our foreign aid we're doomed, foreign aid is our way of bribing the world so they look the other way regarding our consumption (and a bunch of other things).
Besides that foreign aid is a actually very small percentage of our budget.
Save your time, I don't answer PM. Post it in the forum and a dedicated DDF'er will get back to you as soon as possible.

Offline elikay

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Re: Raising the Debt Ceiling - Discussion Thread
« Reply #15 on: July 27, 2011, 12:40:17 PM »
I was listening earlier to a Bloomberg analyst saying that no one expects the government to stop paying interest on bonds, so even if there's no deal there will be a temporary "headline" crash (due to headline news) but within a couple of days and possibly hours the market should return to where it was and possibly even rise further given that uncertainty was removed.

Offline Yellow

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Re: Raising the Debt Ceiling - Discussion Thread
« Reply #16 on: July 27, 2011, 07:02:25 PM »
This whole debt ceiling thing makes me crazy. If we cant even pay our bills now, how on EARTH would this country be able to support Obamacare?

Offline aussiebochur

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Offline AsherO

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Re: Raising the Debt Ceiling - Discussion Thread
« Reply #18 on: July 29, 2011, 12:29:56 AM »
Not sure if this is more funny or sad, http://finance.yahoo.com/news/Apple-Now-Has-More-Cash-Than-siliconalley-2326997592.html?x=0&.v=3

Steve Jobs for president!

(...NOT)

P.s. Why does the URL say Silicon Alley, if the headline says US Government?

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Offline Deal Guy

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Re: Raising the Debt Ceiling - Discussion Thread
« Reply #19 on: July 29, 2011, 02:04:39 AM »
Not sure if this is more funny or sad, http://finance.yahoo.com/news/Apple-Now-Has-More-Cash-Than-siliconalley-2326997592.html?x=0&.v=3
It's a silly comparison in the article. Even when they mention Apple they say cash PLUS MARKETABLE SECURITIES.