as we near august x day, the markets would progressively freak.
we should pray before we prey. big trade to extract living expenses for next 24-36 months coming right up, should capitol hill not disappoint.
wonder how the congressional members are positioned in their portfolio allocation?
just in in-tray, following up to bipartisanpolicy.org
On 4 Jul, 2011, at 10:43 PM, R wrote:
"That is very interesting. B, thanks for the link.
For those who did not open the file, I suggest taking a quick look, especially the few slides starting fro page 26, "Market Risk".
Assuming that the debt ceiling would be raised one way or another, August is going to be hell of a month for treasury auctions. Just maturing alone would be $467.4 billion (slide 28). Would Geithner have to make up the $232 billion of extraordinary measures he deployed in May to prevent a default back then? (slide 5) Finally, if the pro forma of <$159 billion> in deficit for August is correct (slide 12), would Geithner have to borrow that money also, not to mention for May, June and July?
It is very unlikely that the debt ceiling issue would be resolved more than a few minutes before midnight on August 1. What should we be expecting for total august auctions? More importantly, when is the market going to start paying attention?
Any thoughts?"
i say, let us watch and see if s&p does same with more substantive debtor come august, or
maybe they would invoke either exceptionalism or tee-up double standard
perhaps they are in discussions with cyrus vance the junior to work out a spin that can pass the bad taste test even if fail at the laugh exam
ftalphaville.ft.com
"The French proposal, c’est un défaut sélectif, says S&P" |
