Sunday, July 31, 2011
And while details are still coming out, one of the provisions is that the Republicans and the Democrats have to continue to work together.
President Barack Obama announced in a press conference Sunday night that a deal over the debt ceiling has been brokered. The agreement calls for increasing the debt ceiling and cutting spending in domestic and defense spending. If the deal is passed, increasing the debt ceiling will remove the "uncertainty to support the American economy." The deal included increasing the debt ceiling to $2.1 trillion and shrinking by $1 trillion. Of that amount, $350 billion will come from defense spending, according to a document provided to the White House to reporters. According to a story by the Huffington Post, Debt Ceiling Deal Reached To Avert Default (LATEST UPDATES), program cuts to Social Security, Medicare, and “low-income” programs will be …
Saturday, July 30, 2011
Area lenders say it's a 'wait and see' game, and consumers haven't been vocal in their concerns.
I'll be the first to admit, the drone of debate on the debt ceiling has been white noise for me. It's summer and it's difficult to get seriously focused on topics that ruin the fun. Apparently, I'm not alone. Checking in with our area lenders*, they report little inquiry or concern about the ability to borrow money beyond August 2, which is the deadline for the United States to be able to borrow money. In other words, spending and borrowing will reach the max on the US' credit card then. As an article in Wise Bread explains, "In the same way we saw Americans living outside of their means by taking out too much credit to buy bigger homes than they could afford and maxing out their credit cards, the U.S. government uses too much credit. …
Economists say standoff on the debt ceiling will hurt anyone with investments - government, businesses or individuals.
Citing "a hundred variables," local economists say it's too soon to tell just what the local effects of a default on the federal debt would be – but without doubt, there will be dire effects felt at every level of society if Congress fails to raise the debt ceiling in a timely fashion. Interestingly, under one scenario, the damage ultimately could hit as hard or harder in the suburbs - which tend to be more Republican - than it would in city centers. "It all depends on what bills the federal government would choose to pay, and on what the markets do," said Scott Drewianka, associate professor of economics at the University of Wisconsin-Milwaukee. "In the first place," he said, "I don't think there's necessarily a disaster that happens if …
CowDung
12:33 pm on Tuesday, August 2, 2011
Considering that I drive a 2000 Saturn and don't consider myself to be an 'over-privileged white dude', I'm not sure that I can tell you what they drive... more ›