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The U.S. Debt situation and your securities

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SHaGMaSTA

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Hi guys,
Im suprised noone has asked or discussed anything regarding the U.S debt dilemma. Whats everyones personal take, are you holding on to your securites, are you bailing and waiting to see what happens? Are you buying more? If so why? Lets chat. :)
 
SHaGMaSTA said:
Hi guys,
Im suprised noone has asked or discussed anything regarding the U.S debt dilemma. Whats everyones personal take, are you holding on to your securites, are you bailing and waiting to see what happens? Are you buying more? If so why? Lets chat. :)
Click to expand...

Holding, have made a few small deployments.

you ask why? because I believe it is just political posturing, and eveything will be ok 1yr from now.

In the words of winston churchill, " the USA always does the right thing, but only after exhausting every other alternative":)
 
If it doesn't go though, which seems to be increasingly likely, then I read that the US can last a month before defaulting as long as they cut out paying certain things.
The first payment I would stop is congressmen's salary.

It really annoys me that politics is more important than reaching a compromise.
Surely the Republicans can let some tax loopholes be stopped, such as the private jet one and then ask for major cut backs in spending and put Obama on the back foot.

The latest Republican deal achieves bugger all in savings except have us go through it all again in 6months before the election which Obama says is a no go. I know it might help them win the Presidential election but at what cost to the USA and the world?? And I thought our politicians were hopeless.
 
Knobby22 said:
If it doesn't go though, which seems to be increasingly likely, then I read that the US can last a month before defaulting as long as they cut out paying certain things.
Click to expand...

The official line is they will be running on fumes. Actually they have been running on the reserve tank since mid May, when the debt ceiling was actually reached.

There is a big payment of social security due out mid August, but the true test will come sooner on 10 Aug (I think) when they need to roll over some existing debt.

In my mind the market is up for a big fall, deal or no deal.
 
http://money.cnn.com/2011/07/28/pf/expert/debt_ceiling_401k.moneymag/
Should I move my 401(k) stash into cash? By Walter Updegrave @Money July 28, 2011: 4:50 PM ET

"...Yes, 'something' will happen if the U.S. fails to meet its obligations, but no one really knows what that something will be. The consensus seems to be that we'll see a major sell off in the markets. And I think it's very likely that could happen...

...On the other hand, it's not as if investors haven't had time to think about this event. They have presumably factored their apprehensions into asset prices already, so it's possible the reaction might not be as severe as many think..."
 
No one thinks a default is going to happen.
Normally that means that if it does happen all hell will break loose!
If there is no US default and no US downgrade it could be the last good buying opportunity.
If your not leveraged you can always leverage after the **** hits the fan.
If your leveraged well it's going to be a stressful weekend!
 
U.S. Debt situation and your securities virtually resolved

Looks like an agreement between democrats and republicans has been struck.
This morning shaping up to be a good buying opportunity provided the market doesn't belt out too high to start.
The ratings agencies could still downgrade the US and Euro shenanigans are still burning away which remain the more significant danger than the political soap opera in the US.
One of the best ways to test sentiment is to look for seemingly involuntary statements. One significant one was by and economist talking about China who was starting to get a bit vocal about US political impasse. The comment was that China should diversify into US stocks. That actually sounded very sensible and indicates a growing trend that securities are safer than bonds due to stocks balance sheet strength etc etc.
We could rally right through Christmas from here! As we managed to ignore Europe for a year till a couple of months ago and we can do that again.
Ausi dollar strength at over 1.10 will help our market continue to under perform however.
ASX = 4425
 
Looking good so far, though theres been a fade when obama started to speak.
Probably the ones that bought this morning :)
 
Definitely the news out of the US this morning has brought some buyers in, the XAO added 50 points at the open, when the SPI predicted flat.

Thing is, this latest so called compromise is a two-step approval, it has to pass the Senate, and then go through Congress. So I wouldn't be counting any chickens.
 
http://www.marketwatch.com/story/ho...e-bill-2011-08-01-1910480?link=MW_latest_news

Aug. 1, 2011, 7:10 p.m. EDT

House approves debt-ceiling increase bill, By Steve Goldstein WASHINGTON (MarketWatch) --

By a 269-to-161 vote, the House of Representatives voted Monday to increase the debt ceiling and reduce projected budget deficits. The U.S. Senate will likely vote Tuesday, with strong expectations the bill will be approved in the upper chamber. President Barack Obama has said he'll sign the bill when presented to him. The Treasury Department has said the nation risks default if the debt ceiling isn't raised by Tuesday.
 
The manufacturing report out of the US did everything but spell recession!
The only hope now is that it was just a soft patch amid the tepid US recovery.
The SNP did bounce nicely off the 200 day moving average and finished with an upswing.
Yet what the DAX and CAC did was a sign of real panic in euro zone.
It's going to be a horrible morning on the ASX. I'll be buying!
 
what 15 trillion in $100 notes looks like..

Cheers
........... Kauri
 

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WOW lol. great post.

US can always print money but that creates a nasty inflation tax. best thing to do is cut all useless spening programs & do buffetts program IMO.

wouldnt worry too much if you have got good businesses
 

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