That's the best explanation I've heard
US Debt Ceiling
- Thread starter BradK
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That's the best explanation I've heard
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Thankfully we are oceans apart politically.Indeed !! Absolutely !! There is such a world of difference here and it would be totally unworthy to even imagine such a juxtaposition.
Knobby22
Mmmmmm 2nd breakfast
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It appears the big win the Republicans got was to stop Biden spending additional money to catch tax evaders (80 billion).
In effect they want they want to make it optional for the wealthy to pay tax. Honestly the USA self harm keeps continuing.
It is sobering.
In effect they want they want to make it optional for the wealthy to pay tax. Honestly the USA self harm keeps continuing.
It is sobering.
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everyone assumes those long-dated Treasuries were bought at par ( face-value ) ... were they ?
there must have been some attraction to (potentially ) tying up customers money for 10 to 30 years ( especially a bank not a pension fund )
using the bonds as collateral in some other investment vehicle perhaps
given the low interest rates when those bonds were purchased i am amazed they didn't buy TIPS ( inflation-adjusted Treasuries or a floating rate interest-bearing bonds )
am still wondering why long duration and note short-term-mid-term
but will we ever know the reasoning after all these were NOT small banks they had billions under management
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hopefully that trend towards self-harm is not contagious ( but i fear it is )
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Not so sure about that Knobby. This was the analysis on Politico. Perhaps more of a flesh wound ?
IRS cuts
A portion of the $80 billion in funding Democrats pushed through for the IRS last year would be clawed back. That pot of money is supposed to help the agency super-charge its ability to go after wealthy tax cheats, modernize its IT systems and improve customer service.Republicans have been on a tear against the funding for months, saying it would primarily be used to go after average taxpayers, despite the Biden administration’s vow not to increase usual audit rates for those making less than $400,000.
While the administration fought to wall off the money, the cut is expected to be relatively small compared with what the GOP had pushed for all year. House Republicans used their first vote after taking over the chamber this year to call for rescinding more than $70 billion of the funding, while leaving some money intact for taxpayer service improvements.
The debt-limit agreement probably won’t please either side, though Republican lawmakers have more reason to be disgruntled than Democrats since the funding isn’t being eliminated.
Here are the 6 must-know provisions of the new debt ceiling deal
The policy provisions of the agreement between President Joe Biden and House Speaker Kevin McCarthy appeared to fall far short of conservatives’ demands.
www.politico.com
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Actually I find it frightening
Value Collector
Have courage, and be kind.
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I believe they had built their business by offering depositors a slightly higher interest rate on their at call deposits.
This higher interest rate was funded but putting the deposits to work in longer dated government bonds and private ABS.
It’s an ok strategy provided either the total pool of deposit remains static, withdrawals and deposits stay in balance or the market value of the securities is static
But if deposits out match withdrawals while the market value of the securities drops, the bank is in trouble.
Value Collector
Have courage, and be kind.
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Turns out Desantis is running for President, if he gets in America is going to be crazier than it already is.
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Brings to mind the film of some years ago "The Inmates are Running the Assylum"
Dona Ferentes
A little bit OC⚡DC
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US lawmakers approved the debt ceiling and budget cuts package, easing concern about a default in the world’s largest economy.
US lawmakers from both parties joined to approve the bill 314-117 Wednesday evening (Thursday AEST), sending the measure to the Senate for consideration as a default deadline draws near...
US lawmakers from both parties joined to approve the bill 314-117 Wednesday evening (Thursday AEST), sending the measure to the Senate for consideration as a default deadline draws near...
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Playing politics at its worst.
Dona Ferentes
A little bit OC⚡DC
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and now...
US President Joe Biden has signed legislation lifting the nation's debt ceiling and averting an unprecedented default on the federal government's debt.
US President Joe Biden has signed legislation lifting the nation's debt ceiling and averting an unprecedented default on the federal government's debt.
Key points:
- The legislation was signed with two days to spare until the Treasury Department warned the US would start running out of money
- Raising the nation's debt limit to $US31.4 trillion will ensure the government can borrow to pay debts already incurred
- The final agreement will suspend the debt limit until 2025 and restrict government spending
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Shows the stupidity of it all.
The debt ceiling is artificial if its suspended.
So the Feds can rack up trillions more in debt until 2025.
Just like Obama, Trump, did.
Whats the bet that by 2025 comes around and the debt ceiling comes out of suspension that the debt has already gone over this new and improved debt ceiling.
By then there will he a new president, senate congress and probably new senate and congressional leaders of both parties who will have to "worry" about it.
Mick
Dona Ferentes
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Almost seems like Monopoly Money with these figures
Value Collector
Have courage, and be kind.
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It’s a big country, $31 Trillion government debt sounds big, but compared to Private debt in the USA it’s small, Private Debt is over $90 Trillion.
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So that's about 3 boxes of Monopoly
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The latest treasury auction did not go well.
regardless of what the Fed does with their rate sets, the market is telling the US guvmint that if they want more money, it will coat the current and future taxpayers a lot more money.
Mick
regardless of what the Fed does with their rate sets, the market is telling the US guvmint that if they want more money, it will coat the current and future taxpayers a lot more money.
Mick
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good ! the Yanks need better entertainment now Disney has become a Woke refuge
