Sunday, July 24, 2011

White House Chief Of Staff Warns About "Stressful Days In The Market"

Submitted by Tyler Durden on 07/24/2011 - 10:27 Debt Ceiling Reuters White House Update: we have just gotten word that there will be a GOP conference call at 4:30 pm on the debt limit. Apparently the GOP is dead set on the 8pm Asian open and disregarding the much more important FX open.
It may be time to panic... at least on a "transitory" basis. After Boehner essentially said earlier that there are still no details what the "two-tier" plan noted yesterday would look like, we now are 5 hour away to FX open. And judging by the comments of White House Chief of Staff, it is almost as if the administration would like to see a selloff. Per Reuters: "White House Chief of Staff Bill Daley said on Sunday there will be a few stressful days ahead for financial markets but that a U.S. debt deal will ultimately be reached. "In the end, we may have a few stressful days coming up -- stressful for the markets of the world and the American people," he said on the CBS program "Face the Nation. Daley quickly added that he is confident a deal will be reached to raise the debt ceiling. We are confident he is right. We are also confident that if it takes a 200 point plunge in the S&P to achieve that target, well, so be it.

Boehner's Full Fox News Appearance

For those who missed it, here is the full video and summary from Boehner's earlier appearance on Fox News Sunday with Chris Wallace. The "Asian market open" strawman is getting closer, and there is absolutely no resolution yet. Ironically, just like with QE3, the all too habituated market will buy every dip (remember: nothing can possibly go wrong in the global Bernanke put regime) easily validating the republicans' paradoxical case that the market can more than survive a failure to reach a debt ceiling hike consensus. In the meantime, even as the S&P surges to unseen heights the economy is on the verge of cannibalizing itself as the government begins scrambling for every available penny of incremental revenue.

Boehner: GOP May Move Alone on Debt

US Officials Scramble for Debt Deal as Clock Ticks

White House officials and Republican leaders scrambled on Sunday to reassure global markets the United States would avert a debt default but the two sides gave no sign they were moving closer to a deal.

Snapshot Update Of US Debt Talks

Here is where the all too fluid situation is right about now, 8 hours away from the Asian open, courtesy of Reuters.

Guest Post: Two Cracked Political Parties, One Scrambled Nation

It’s truly illusory for anyone occupying the White House these days to think s/he is the president, the leader of all Americans. In political legalese, maybe; in reality, not the slightest chance… for we are the prototypical major society split between haves and have-nots. And to this day in his presidency, Barack Obama talks and acts clueless as to that irrefutable fact. Although the socioeconomic divide between haves and have-nots is the norm in most nations of the world, how Americans view that condition is quite different from the rest. When have-nots in the United States look in the mirror, the vast majority of them still see themselves as haves, that’s how gullible they have become. Perhaps it has to do with past economic dominance of the US, still lingering in past glory and an unreal sense of nationalism, often promoted by politicians of the two brands as exceptionalism.

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Dr. Gary North's comments on debt-based money and its alternatives.

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