A point that needs to be made: This fight over whether to shut down the government for a few days is chicken-scratch.
It's low-stakes poker compared to the fight over the debt ceiling, which must be resolved by May 8, in just over a month.
Several GOPers have already said they won't raise it without some "significant" concessions from The White House on the future of spending, and whatever good will John Boehner has to burn up in getting a budget passed will be taken directly from the appetite the GOP had in raising the debt ceiling.
The consequences are way more severe, potentially, than the shutdown of government. At the most extreme, it could lead to default. And if you figure that the market goes into a tizzy at the suggestion of, say, Greece defaulting, then the impact of the US should be easy to comprehend.
There's no doubt that Boehner doesn't want a disastrous outcome, but his challenge is in getting his more radical compatriots to come along with him.
So enjoy the theater of what we're seeing now. It's just the opening band.
Read more: http://www.businessinsider.com/the-debt-ceiling-debate-2011-4#ixzz1IsAxIIQP
Thursday, April 7, 2011
Confirmation on Israel War Threat
Submitted by: Francis Soyer
4/7/11
In response the the headline just posted on Zero Hedge that a Netanyahu Spokesman made an announcement that all out war could begin as early as tonight within Gaza I have gotten confirmation from Al Jazeera that "Violence erupts across Gaza Border"
http://english.aljazeera.net/news/middleeast/2011/04/20114713475225620.html
This is a very serious development and has the potentional if this does in fact occur to crush equity indices. Hence defensive trading advised.
Netanyahu Spokesman Says War May Break Out Between Israel And Gaza As Early As Tonight
Just to make the clusterflock complete the following news from BBC Newsfile crosses the tape: "The Ma'an News Agency website in Arabic at 1631 gmt on 7 April posts the following "urgent" caption: "[Ofir] Gendelman [spokesman for the office of Israeli Prime Minister Binyamin Netanyahu] Tells Ma'an: I do not rule out the possibility that Israel will wage war on Gaza tonight." Or, more metaphorically, the proverbial flame in a fireworks store. Surely this last straw will send the S&P limit [up
down] until someone has the brilliant idea that Bernanke can print his way out of that one as well.
More as we see it.
down] until someone has the brilliant idea that Bernanke can print his way out of that one as well.
More as we see it.
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