Debt Ceiling Defined - as part of the expert series by GeoBeats.
Debt Ceiling Defined
We’ve all heard, and we’ve seen in the news, that our country is reaching its debt ceiling. But few of us really understand what that means, or know how it impacts us personally. So, the debt ceiling, let’s see if we can make it apply in a more familiar situation. Say in your household you have a certain number of credit cards and you have access to certain lines of credit. Well, over time, if you max out all your credit cards and all your lines of credit, basically the creditors, the banks, will say you cannot borrow any more. So that’s the situation we’re faced with as a country; and there are some who argue that we should raise that ceiling, meaning we should be allowed to borrow more, just like going to your own bank and saying, can I please borrow more, because this is a tough situation; and there are others that say we need to not borrow more, we need to focus on paying down the debt. So that’s the general situation, that’s what it means, and it’s going to take a collaborative effort to figure it out, because it’s a pretty complex problem. But we all have to work together, and it will get resolved.
Week in review: Scott speaks at random about a variety of topics including Amy Winehouse's passing, the debt ceiling negotiations, Chinese bioengineering, the Cyprus CDS blowout, a leopard attack and more.
Check out the blog for links to the articles he mentions.
Congress finally passed a debt ceiling package. Joe Biden says jobs will now be a priority and president Obama seems ready to cut social security and medicare next. Cenk Uygur breaks it down.
The Republicans have finally have caved with a deal done and the House ready to pass the Senate’s deal that delays the debt ceiling and government shutdown till early next year.
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Get the early read on earnings season. Then we set folks straight on what the debt ceiling debate means to investors. Plus top picks of the week.
The markets are pausing today after great earnings from Apple. At this point, all eyes are on the debt ceiling talks. This will determine when the next push higher starts. Financial stocks are rallying sharply today. Graet gains from Bank of America and Goldman Sachs even after they reported sub par earnings. Bottom line is, the financial stocks were due for a bounce. They are getting it in a major way today. Small cap wise, watch ZOOM which is a play off AAPL. AAPL said earnings were big due to China phone sales. ZOOM is a China phone play. ZSTN is as well, that stock has shot up 40% in the last few days.
There is still a standoff between the Democrats and Republicans when it comes to raising the debt ceiling. Everyone is now wondering which side will cave in first. Failing to raise the debt ceiling has really had very little effect on the stock market as of late. Once the debt ceiling is increased the stock markets should see a short term bounce. This morning, the S&P 500 Index e-mini futures are trading higher by 2.25 to 1335.75 per contract. This is basically going to be a flat stock market open. Traders should expect volatility in the markets until a deal is reached in Washington.
August 2, 2011 (2:50)
The U.S.Government has been in heated debate over how to deal with the debt ceiling crisis. Now for better or for worse an agreement has been reached.
Currency markets almost seem to expect that like most suspense movies that the ongoing debt ceiling deadline will only be resolved when there is a few seconds left on the clock.
Much has been said about how investors should react to the debt debate. And most of it is 100% wrong. Get our take along with top stocks of the week.
Clean Skies News talks to Jeff Holmstead of Bracewell and Giuilani about Senator Lisa Murkowski's amendment that would stop the Environmental Protection Agency from regulating greenhouse gas emissions. Jeff Holmstead helped write the original amendment. Senator Murkowski will speak on the floor tomorrow, January 21, about whether whether she's going to offer an amendment to the debt ceiling bill or file a disapproval resolution.