Tuesday, October 20, 2015

Major media outlets wait and see on the next debt ceiling "drop dead" date in early November

The debt-ceiling issue is back, as I wrote on the Retirement Blog yesterday.  The latest article on GOP votes and Boehner’s situation right now (approaching noon Tuesday) is here.  The drop-dead date varies from Nov. 3 to Nov. 10, according to the very latest reports.  WJLA did mention the issue briefly in its noon news today, but without much urgency.

I checked around with some media outlets Monday afternoon, and the attitude seemed to be “wait and see if this is for real”.  As of noon Tuesday, the issue does not seem to be affecting securities markets – yet.   Everybody is distracted by whether Joe Biden will run.

The most alarming reports seem to suggest that the ideologues in the GOP really still would be willing to go off a cliff, and some people really seem confused about the difference between new spending and paying bills already owed (and the legalities over the way the Social Security trust fund is handled can complicate that problem further). Would bondholders in China get paid before Social Security?
You can see why Porter Stansberry and Ron Paul have some cannon fodder right now.

Update: Friday, Oct. 23

Although the stock market goes up, danger signs continue.  Today, on CNN, SC GOP Congressman Mark Sanford said he was against raising the debt ceiling, but the GOP would come together, uner Ryan. Really, the US should just decide who to stiff?  We've been there before.

The Washington Post has grim blog entry today by Paul Waldan, here.  I'm asking Vox when it will lower the boom on this issue.  This isn't funny.  But the markets are still "'too sinful to notice".

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