Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Stocks Crossing The 13 Week Moving Average <$10.01 -- Ignore unavailable to you. Want to Upgrade?

To: James Strauss who wrote (12146)	2/18/2003 3:19:10 PM
From: Bucky Katt	Read Replies (1) \| Respond to of 13094

I have been buying a bunch of index puts on this runup. As I have for the past few years, the time to really play the options is expiration week...

To: James Strauss who wrote (12146)	2/19/2003 5:30:47 PM
From: Bucky Katt	Read Replies (2) \| Respond to of 13094

The U.S. will run up against its legal debt limit Thursday, forcing the Treasury Department to take measures such as tapping government retirement funds until the debt ceiling is raised. The Treasury Department said it will tap into a government fund starting Thursday, and also will suspend new issues of state and local government securities, effective immediately. The Treasury Department has warned for months that the debt limit -- currently at $6.4 trillion -- would become a problem this spring if Congress didn't take action. Treasury officials said the department would have to continue taking such action until the debt limit is raised. "By reason of the public debt limit, I will be unable to fully invest the Government Securities Investment Fund" beginning Thursday, Treasury Secretary John Snow said Wednesday in a letter to congressional leaders. Federal Reserve Chairman Alan Greenspan urged lawmakers last week to reconsider the debt limit, particularly since it encompasses the Social Security Trust Funds as well as debt held by the public. On Wednesday, Treasury officials echoed their previous call to abolish the limit altogether. "To quote previous secretary Paul O'Neill, the debt ceiling is an abomination," said Brian Roseboro, the Treasury Department's assistant secretary for financial markets. With Wednesday's announcement, the Treasury will begin to access about $48 billion in the Government fund, also known as the G-Fund. The Treasury is allowed to tap into the G-Fund and adjust its use daily provided it replaces any borrowed funds and lost interest as soon as possible. The Treasury has yet to tap almost $40 billion held in balances at large banks. Known as "compensating balances," those accounts normally earn interest to pay for banking services, but the Treasury is able to access those funds also if needed. Last year, a standoff over the debt ceiling dragged on for months before Congress finally approved an increase on June 28. Before that happened, the Treasury emptied the compensating balances, suspended state and local government securities and tapped into a larger retirement fund, the Civil Service Retirement Fund. To access that fund, the Treasury Secretary must declare a "debt suspension period," which it hasn't yet done. As last year's problem dragged on, the Treasury also resorted to adjusting its bill offerings. At one point, the Treasury suspended one of its monthly two-year-note sales until Congress raised the limit. Mr. Roseboro said the Treasury had no immediate plans to alter its cycle or scope of new debt issuance. The Treasury warned again its measures may not last until mid-April, when Americans' tax payments could provide relief. "There is some risk that all of our tools will not be able to get us to that point," Mr. Roseboro said. Tax inflows, the pace of tax refunds and other spending demands will continue to affect debt forecasts, he said. Those factors remain uncertain, but Treasury officials will adjust their predictions when possible. "We'll reassess when we get closer to that point," Mr. Roseboro said. Updated February 19, 2003 5:23 p.m. EST