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Wall Street hopes John Boehner will offer reassurance in his NYC speech tonight that Congress...

Wall Street hopes John Boehner will offer reassurance in his NYC speech tonight that Congress will "negotiate and debate" but "when it comes down to brass tracks, they are going to raise that debt ceiling." Instead, the House Speaker appears set to demand trillions in cuts to get a debt ceiling hike, setting up a collision course with Pres. Obama and Democrats.
Comments (20)
  • User 487974
    , contributor
    Comments (1105) | Send Message
     
    This guy need a set of brass ones. Do you have a set of brass balls sir? The country is relying on you to stand tall, stand proud! No backing down here. Shut it down if Obama so much as gives you any push back! Anything less and you hand him his re-election tonight!
    Well John, I pray foe you and ask God to give you the strength you will need. You go into battle and history is watching! What do you do!
    Jerry
    9 May 2011, 06:19 PM Reply Like
  • Topcat
    , contributor
    Comments (423) | Send Message
     
    WIth leaders like this who needs enemies...Wingers are determined to keep the economy down to improve their election chances! Country first! hahahahahha yeah right..instead of negotiating a nice deficit and spending reduction plan, with auto reduction limits, and a several year plan that gets us there w/o wrecking the slowly improving economy, he goes extreme as always...nice..of course, some abortion thing will be in there, as always
    9 May 2011, 06:24 PM Reply Like
  • davidbdc
    , contributor
    Comments (3154) | Send Message
     
    It would be great if he actually meant it....

     

    But lets remember the 100 billion.... er 39 Billion....... er 314 million cut in spending they got for not shutting down the government.

     

    So they got .3% of what they promised!!!

     

    He's a wuss plain and simple. The government should have been shut down. He agreed to phony make-believe cuts - I guess he thinks the public really is that stupid.

     

    Obama isn't going to cut anything. And I'm sure that the Republicans will worry more about their re-election chances than the future of our children and grandchildren and will fold.
    9 May 2011, 06:28 PM Reply Like
  • Terry330
    , contributor
    Comments (867) | Send Message
     
    Contrary to what those in power would like you to believe so that you'll give up your pension, cut your wages, and settle for the life your great-grandparents had, America is not broke. Not by a long shot. The country is awash in wealth and cash. It's just that it's not in your hands. It has been transferred, in the greatest heist in history, from the workers and consumers to the banks and the portfolios of the uber-rich.
    - Michael Moore
    9 May 2011, 06:32 PM Reply Like
  • wkl
    , contributor
    Comments (289) | Send Message
     
    ...And to Hollywood producers with their bullshit propaganda.
    9 May 2011, 06:56 PM Reply Like
  • wyostocks
    , contributor
    Comments (7873) | Send Message
     
    Damn Girl, lay off the Kool Aid. When you quote a wacko such as M Moore I know just how F**Ked up you are.
    9 May 2011, 07:10 PM Reply Like
  • TomasViewPoint
    , contributor
    Comments (4845) | Send Message
     
    Michael Moore ate all our wealth. By the looks of him he has not worked an honest day's work in his life.
    9 May 2011, 09:18 PM Reply Like
  • Joe Morgan
    , contributor
    Comments (1500) | Send Message
     
    Obama has the power to step up and cut the damn deficit....but as we have seen since his first day on office, he is the typical pretend person...he is the college student who has an essay to make with a deadline in a few months...the student keeps every day telling himself, tomorrow I'm going to start, but the days pass and no action, just kicking the can again and again, just pretend everything would all be right.....

     

    Obama is a procrastinator...he would probably never cut the deficit before 2012 elections...
    9 May 2011, 06:33 PM Reply Like
  • cstauffer
    , contributor
    Comments (459) | Send Message
     
    How's that austerity thing working out for Europe? You do not impose sharp cuts in goverment spending at the same time that you are trying to get economic growth to take hold. This is ridiculous and is purely political,which is what is so disheartening because these politicians have, in my opinion, a fiduciary responsibilty to the citizen's of our country to do the right thing, not the politically convenient thing.
    9 May 2011, 08:35 PM Reply Like
  • Joe Morgan
    , contributor
    Comments (1500) | Send Message
     
    You would be right if the trillions of dollars wasted, would have gone to productive thinks like boosting jobs and exports....why didn't we cut taxes in a drastic way to small businesses? Instead we got Obamacare, Union jobs and freeloading...We let the parasite to keep killing the host, so much for "change"...

     

    By the way I don't support draconian cuts, let's just start cutting the deficit by phases, each year a little bit more than the last...that way we protect taxpayers and don't cripple growth...
    9 May 2011, 08:48 PM Reply Like
  • cstauffer
    , contributor
    Comments (459) | Send Message
     
    Joe, I don't disagree with small but structure cuts which will result in meaningful long-term cuts to the deficit. You and I agree that stimulous spending should have been in areas which boosted exports and improved productivity through improved and updated infrastructure. The problem was that at the moment that the stimulous bill was being formulated we were losing 700,000 jobs per month and it would have taken 12 -18 months at best to get the type of spending that you and I would have preferred into the economy.
    9 May 2011, 09:10 PM Reply Like
  • Topcat
    , contributor
    Comments (423) | Send Message
     
    Er, "Obamacare" does just that, and actually does cut the deficit.
    10 May 2011, 01:43 AM Reply Like
  • tigersam
    , contributor
    Comments (1711) | Send Message
     
    John Boehner is playing with fire and he is going to burn down his own house. Debt ceiling and budget are not related. John is a puppet and he does not speak freely.
    9 May 2011, 08:28 PM Reply Like
  • TomasViewPoint
    , contributor
    Comments (4845) | Send Message
     
    Everyone should be talking about trillions in spending cuts over the next 10 to 12 years. This should not even be debated any longer as we are way in over our heads. We cannot do it all up front but we need a road map.

     

    If we don't get our act together then Ben will have to keep buying UST's, inflation will get worse, rates will eventually rise unless we completely leave our senses and destroy our currency which seems like a possibility.
    9 May 2011, 09:28 PM Reply Like
  • fxmaven
    , contributor
    Comments (1455) | Send Message
     
    No one will cut spending, no one will raise taxes, no one will stop printing money - on both sides of the atlantic. Especially with 2012 election already started - and anyone who believes otherwise is nuts.

     

    Nobody gives a toss about economic management and fiscal discipline. economies will swing from recession to nominal booms (but growth will be negative in real terms).

     

    thank you weak hands for coughing up your gold....
    9 May 2011, 09:53 PM Reply Like
  • dsadak
    , contributor
    Comments (16) | Send Message
     
    Joe, cutting taxes when everyone is strapped for cash will result in absolutely no money inflow into the system, which is what was needed at the time. just in case you've missed it: i'm sure you are familiar with the concept of deleveraging, well cutting taxes does not stop the free fall when the system goes through this process, only the inflow of money could accomplish that, which in turn is either accomplished directly by pumping money into the system (which is what had happened) or by increasing the money multiplier which is usually accomplished by further leveraging, which im sure you can understand was not an option at the time. so frankly i am not sure what other tools or methods that you have in mind that would of prevented a depression with the same swiftness as the methods our Fed had employed.
    my point being from the start fed acted quickly and did the right things. Now however Fed is faced with a dilemma: money that has been pumped into the financial system have not been getting through into general economy. if you read the newspapers you will notice that corporations are sitting on enormous stockpiles of cash (i'm sure even if you just scanned the headlines you would of noticed something along the lines "corporation cash levels are at historic highs") which means cutting their taxes will accomplish absolutely nothing but shove more cash down their throats. and this is where we are, so please do tell how any of the brilliant solutions proposed by the radical right wingers will produce any positive results let me emphasize this: FOR THE US ECONOMY
    9 May 2011, 10:39 PM Reply Like
  • NUNAY the KING
    , contributor
    Comments (234) | Send Message
     
    One of the reasons corporations have so much cash is because they budget their money and PAY OFF THEIR DEBTS. This leaves some corporations WITH A LOT OF CASH. Most politicians spend everyone else's money including their children's, if they can get their greedy hands on it.
    The citizens of the United States must make it LAW - that if the politicians spend money they do not have - it will be called "stealing", and "stealing" means ending UP IN PRISON.
    I think that balanced budgets would quickly evolve at every level of government.
    10 May 2011, 01:41 AM Reply Like
  • dsadak
    , contributor
    Comments (16) | Send Message
     
    Nunay actually you could not be more wrong about why corporations hold so much cash. why would they want to pay off the debt that pays such low interest? - makes no sense. corporations like everyone else are skeptical on where economy is going to turn. they are holding off hiring as well increasing cap ex. everyone is watching what extremists (i.e. our politicians) are going to come up with.
    10 May 2011, 09:34 AM Reply Like
  • TomasViewPoint
    , contributor
    Comments (4845) | Send Message
     
    dsadak

     

    Corporations have borrowed money to retire older debt which was at higher rates. They have also borrowed to fund acquisitions based on the savings and growth they see in the acquisition. So it is close to a money in and money out exercise. And they get a tax deduction for the interest payment so the effective cost is not really the nominal rate.

     

    Overall they are pretty smart about how and when they use debt versus equity as companies are structured for more responsible fiscal management. On the other hand our Fed Gov is structured for spending and passing bills and there is no extra credit thus far for not spending money. So we are piling up the debt.
    10 May 2011, 09:50 AM Reply Like
  • dsadak
    , contributor
    Comments (16) | Send Message
     
    Tomas, agreed on both points, most financially savvy corporations did refinance their debts as well as issued new debt for the purposes you've mentioned. IBs are on the hiring spree as we speak to help facilitate the M&A activity. however as you pointed out, corporations are very smart about managing their money and will not spend until they see the growth potential and thats from my perspective is whats missing. as per fed, there is political pressure to reconcile spending but clearly it only becomes an issue when its too late. also us has hired a pretty savvy ex HF manager to help manage our debt from the IR/inflation perspective. apparently under previous administrations these risks were not managed, we just printed as we needed more - shocking? - yes, but i cant say that current administration is not taking major steps when it comes to managing our debt
    10 May 2011, 10:03 AM Reply Like
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