It's official! President Joe Biden on Saturday signed a bill that suspends the U.S.'s $31.4 trillion national debt ceiling, preventing the first-ever sovereign default just two days before it was threatened.
The House of Representatives and Senate passed the legislation during the week after Biden and House Speaker Kevin McCarthy reached an agreement after tense negotiations.
The Treasury Department warned Monday that it would be unable to pay all its bills if Congress took no action by then.
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I agree with the others here. It is a paradox that markets are rising. After all, it can't go on like this indefinitely and sooner or later it will burst anyway.
I don't understand the market's reaction - after all, it's bad news in the long run. I think the US Government is making it clear that it is not going to do much about it.
Great, the markets are rising and they think it's a great move, but omg...I mean, it's absolutely horrible! They are unable to run their country and have to borrow an awful lot of money to do it. There's nothing good about it and it's going to burst one day.
So let's hope we have money elsewhere at that point. 😁
I don't understand why this is working so well for the markets, however, they are just postponing the inevitable problem. Clearly it would have been worse if this proposal had not gone through. But I still don't understand the good mood in the market.
Well, what's that number, after 78 pushed back? 😂 ... well, I believe that in our lifetime we will see the time when it will just have to be dealt with somehow, for now I guess as you write, bullish for the market huh. At least until mid-June where the market will be a bit nervous about the Fed again.
So bullish news for the markets or is it already "baked in" in your opinion?
Great, the problem has been successfully postponed...