Rating agencies S&P and Moody’s threaten to lower the United States credit rating today if the government cannot reach a deal on the debt ceiling. S&P said the U.S. rating will be dropped to “D”, the lowest possible rating.
The United States does not have to default on its debt, and the social security and Medicare checks can go out even if Republicans and President Obama cannot strike a deal to raise the debt ceiling by August 2.
The market made further gains after Greece passed the first part of the austerity plan. The Dow Jones Industrial Averages advanced 72 points; 10-years U.S treasury yield was at 3.09%; and the EUR/USD was trading at 1.4460. Crude continued its three-day climb to $95 for August delivery, after news of U.S. supplies having dropped more [...]
Today, the Greek Parliament voted in principle to support a five year austerity plan; however, this does not end the crisis-not by a long shot.
Consumer confidence continues to slip indicating the May slowdown in jobs creation, retail sales, and personal income and spending continues into June. Second quarter GDP growth could be worse than the tepid 1.9 percent registered in the first quarter, indicating a second recession is in the wings.
The Dow Jones Industrial Average was up 145 points and the EUR gained against the USD today in expectation of Greece’s austerity plan passing tomorrow. The vote in Greece will be a close call; if it does pass, it will be by a narrow margin. The EUR/USD was trading in the 1.4350 area today, a [...]
In the debt ceiling talks, President Obama and Republican leaders are locked in a battle of will. The simply truth is higher taxes are not needed, and the U.S. does not have to default if no deal is struck by August 2.
The USD has been losing value for decades now. Budget deficit, prolonged oversea wars, slow economic growth, and artificial devaluation of the currency by the Fed are some of the reasons for the weakening dollar.
The economy is skidding, and President Obama is fresh out of “progressive” fixes.