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View Diary: Fitch Ratings puts U.S. on downgrade watch (63 comments)

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  •  House Republicans Trying to Run Out the Clock (1+ / 0-)
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    Rep. John Fleming (R-LA) told TPM that "part of the House Republican calculus in its plan to re-open the government and raise the debt limit was trying to leverage the Thursday default deadline to their advantage in their back-and-forth with the Senate."

    Said Fleming: "We want to make a deal that they can't refuse, and we're running out of time. Timing is very important here. They're going to be more motivated to take this up. Otherwise, they miss the Thursday deadline."

    Teahadist terrorists want to blow up the economy and destroy America.

    Bin Laden is dancing in his grave.

    •  Bin Laden (3+ / 0-)
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      mythatsme, myrmecia gulosa, zinger99

      Knew us better that we know ourselves.  He knew we would eat ourselves up.  All he had to do was make some kind of scary event and that's all it would take.

      The fact that he was correct is to our eternal shame.

    •  Overwrought? (0+ / 0-)
      blow up the economy and destroy America
      The entire world understands that the problem is not that the United States can't pay its debts but instead understands it is a short term political issue. No investor thinks this is a Greece or Detroit situation or that we won't make good on all our debt (with interest on delayed payments) in the end.

      This is a rare circumstance for which I can't recall a modern precedent -- but my memory may be missing something.

      A short lived technical default will likely cause a short term decline in segments of the bond and stock market (the latter of which, IMHO, is generally overvalued right now anyway - partially because of absurdly low interest rates due to the Fed's manipulation of the bond market). However, two years from now, any such default will have had no significant lasting negative impact. The impact of whatever deal gets made to end such a default may, of course, have a more lasting impact.

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