How bad will things get?

[That One Guy]

Stocks keep falling and the world keeps frowning upon us. If we do get a downgrade (I haven't heard a response since the deal but it couldn't have been enough), they'll only fall more. Stocks fall, economy starts back down the drain, and we go through it all again.

Then what? Do we try dumping money we don't have into the economy again in hopes of fixing it? Do we start going after the rich because we need someone to blame and something we can all unite behind?

The ultimate question is, do we eventually cut bait in order to save the country? Do we finally say "Sorry folks, we just can't afford to help you right now"? Or do they start printing money even faster in order to cover up the shortcomings?

How far do you think this rabbit hole goes? No article for a thread or anything, just curious what people expect in both the reaction as we move forward as well as the end result of the situation.

[TheDave]

Stocks keep falling and the world keeps frowning upon us. If we do get a downgrade (I haven't heard a response since the deal but it couldn't have been enough), they'll only fall more. Stocks fall, economy starts back down the drain, and we go through it all again.

Then what? Do we try dumping money we don't have into the economy again in hopes of fixing it? Do we start going after the rich because we need someone to blame and something we can all unite behind?

The ultimate question is, do we eventually cut bait in order to save the country? Do we finally say "Sorry folks, we just can't afford to help you right now"? Or do they start printing money even faster in order to cover up the shortcomings?

How far do you think this rabbit hole goes? No article for a thread or anything, just curious what people expect in both the reaction as we move forward as well as the end result of the situation.

Frowning upon us? Have you noticed the 10 year Tbill just hit an all time low. Thats not frowning that declaring treasuries as a safe haven.

[TheDave]

Folks our debt is not the issue that the tea party and other politicians tried to make it out to be... No we can not keep spending like drunken sailors forever, but gutting short term discretionary is spending suicide during these economic times. -350.00 tells you the market agrees.

Thank you congress. Job well done.

[alkemical]

Life is going to change, be adaptable, flexible, inventive and invest in your "network".

Best advice I can give.

[That One Guy]

Frowning upon us? Have you noticed the 10 year Tbill just hit an all time low. Thats not frowning that declaring treasuries as a safe haven.

I'm pretty ignorant to the finer points here but would that not be due to an expected collapse of the stock market? Wouldn't the secured investments be the answer when things start to tank?

We have credit reporting agencies not real happy with us, other countries' politicians have been calling us out since the housing bubble burst and whatshisface from Russia just did it again over the debt limit, and we just put all our dirty laundry and incapability to get anything done on the international stage for all to see.

Hopefully you're right, it just seems pretty dire right now.

[DenverBrit]

Buy quality dividend stocks and hold on to your hat.

[TheDave]

I'm pretty ignorant to the finer points here but would that not be due to an expected collapse of the stock market? Wouldn't the secured investments be the answer when things start to tank?

Absolutely, but if we were a "Bad Bet" the treasury yields would be significantly higher, just look at the prices that Italy and Greece pay on their bonds.

We have credit reporting agencies not real happy with us, other countries' politicians have been calling us out since the housing bubble burst and whatshisface from Russia just did it again over the debt limit, and we just put all our dirty laundry and incapability to get anything done on the international stage for all to see.

Hopefully you're right, it just seems pretty dire right now.

Our government... from the Pres to the senate, to the god forsaken congress - all acted like petulant children. If I was a world leader I would have taken the opportunity to take shots at our government also. As for the rating agencies they are pissed off (and rightfully so) that our government did not deal with the important issues of tax and entitlement reform... Instead they kicked the can down the road AGAIN while gutting short term VERY important discretionary spending.

[Tombstone RJ]

The rebound of the stock market was the only real bright spot in this stagnant economy. If it starts to do a chronic slide then I can see real panic setting in.

[That One Guy]

The rebound of the stock market was the only real bright spot in this stagnant economy. If it starts to do a chronic slide then I can see real panic setting in.

I saw a few people saying the rebound in the stock market was unjustified. If that sentiment is accurate, the market could slip some and still be fair and reasonable. How far it could fall once people start getting scared and piling on could be scary.

[Fedaykin]

Folks our debt is not the issue that the tea party and other politicians tried to make it out to be... No we can not keep spending like drunken sailors forever, but gutting short term discretionary is spending suicide during these economic times. -350.00 tells you the market agrees.

Thank you congress. Job well done.

It seems to be beyond most of the drolls here that massive cuts to discretionary spending will be followed by massive layoffs (perhaps 10 million or more) in the public and private sector.

They don't seem to realize that those discretionary budgets pay the salaries of federal employees and indirectly cover the salaries of millions of contractors and employees of companies with federal contracts.

[TheDave]

It seems to be beyond most of the drolls here that massive cuts to discretionary spending will be followed by massive layoffs (perhaps 10 million or more) in the public and private sector.

They don't seem to realize that those discretionary budgets pay the salaries of federal employees and indirectly cover the salaries of millions of contractors and employees of companies with federal contracts.

When I first heard of these BS cuts I thought it was a joke... I figured it was a political ploy that would never gain any traction.

I can't believe they did it... Granted I think todays drop (500+ pts) had much more to do with the Euro and their significant debt issues. But these cuts will begin to show up in the employment numbers starting this month. Then the finger pointing will really get going.

Like I've said before every one of the SOB's should be strung up for financial treason.

[That One Guy]

It seems to be beyond most of the drolls here that massive cuts to discretionary spending will be followed by massive layoffs (perhaps 10 million or more) in the public and private sector.

They don't seem to realize that those discretionary budgets pay the salaries of federal employees and indirectly cover the salaries of millions of contractors and employees of companies with federal contracts.

And that's what you run into when you fix a problem with a quick solution rather than the right one. All these people were hired by the government with money we didn't have in a time when jobs were short. Eventually we have to give up on the notion that the government can be everyone's savior.

[Fedaykin]

And that's what you run into when you fix a problem with a quick solution rather than the right one. All these people were hired by the government with money we didn't have in a time when jobs were short. Eventually we have to give up on the notion that the government can be everyone's savior.

What are you talking about? Do you even understand what the discretionary budget is and what elements of the government it funds?

These are not jobs that were created as a "quick fix". These are regular government employees -- everyone from park rangers, scientists and IT personnel to janitors, drivers, secretaries and security guards.

[That One Guy]

What are you talking about? Do you even understand what the discretionary budget is and what elements of the government it funds?

These are not jobs that were created as a "quick fix". These are regular government employees -- everyone from park rangers, scientists and IT personnel to janitors, drivers, secretaries and security guards.

I don't mean all of them are street sweepers, if that's what you're saying.

I am saying these jobs lost are (or if not, should be) those jobs picked up over the last 3 or 4 years by the Federal gov't. I'm under the impression that pretty much everyone is getting a pinch (hypothetically, of course) and just assumed they'd be doing away with those most recently picked up.

[L.A. BRONCOS FAN]

How bad will things get?

Pretty bad, but not to worry: the millionaires and billionaires whose interests are your top priority will come out smelling like a rose.

[L.A. BRONCOS FAN]

http://www.bartcop.com/tb-ur-welcome.gif

[baja]

Pretty bad, but not to worry: the millionaires and billionaires whose interests are your top priority will come out smelling like a rose.

A friend of mine has a friend / client that just bought 500 houses. Yes I said 500.

[Broncojef]

I saw a few people saying the rebound in the stock market was unjustified. If that sentiment is accurate, the market could slip some and still be fair and reasonable. How far it could fall once people start getting scared and piling on could be scary.

The stock market has been held up and inflated through the monetizing of the debt (printing money/QE2) for some time to give people a sense of security but just as with our government spending and the debt piling up all things will eventually correct themselves. The longer we prop things up and the more this administration tries to "fix" things the worse the crash will be when it hits. We had a housing bubble that was propped up for quite some time and when it crashed people were shocked and pointed fingers, yet in the end the world powers have set up an even greater bubble in the world economy, they can play games and try to hide the real situation for a time but the bubble is now showing signs of the ultimate pop. Take measures now to prepare for what is coming. my price target is 1 ounce of gold will equal the stock market price in the near future and my target is 4,000 for each. the Euro and the dollar are on borrowed time and I'd get out of the stock market...just my opinion. I can't believe there are still people holding to Keynsian views and thinking all we need is more spending. how bad does it have to get before you see the Keynsian model is what is now driving our demise?

[Broncojef]

It seems to be beyond most of the drolls here that massive cuts to discretionary spending will be followed by massive layoffs (perhaps 10 million or more) in the public and private sector.

They don't seem to realize that those discretionary budgets pay the salaries of federal employees and indirectly cover the salaries of millions of contractors and employees of companies with federal contracts.

After the government has printed money to the point of being worthless, no one buys our debt and we are completely broke you might look back and think perhaps financial discretion would have been a good thing.

[Requiem]

Not going to worry about it. I got dreams baby!

[Fedaykin]

After the government has printed money to the point of being worthless, no one buys our debt and we are completely broke you might look back and think perhaps financial discretion would have been a good thing.

It's amazing how black and white you morons are. Someone says "hey, maybe we shouldn't make drastic and abrupt cuts that will dump million of workers into the unemployment lines" and you hear: "let's just completely ignore the budget problem! weeeee!"

[L.A. BRONCOS FAN]

http://www.bartcop.com/vote-smarter.jpg

[Arkie]

Frowning upon us? Have you noticed the 10 year Tbill just hit an all time low. Thats not frowning that declaring treasuries as a safe haven.


Weak demand for 30-year US Treasuries (http://www.ft.com/intl/cms/s/0/299b2f0e-c443-11e0-ad9a-00144feabdc0.html#axzz1UqRkGwKW)
An auction of 30-year US Treasury bonds saw weak demand from bidders, after a sharp decline in yields.

After the sale, yields on the 30-year bond were up 27 basis points for the session to 3.78 per cent. It was the biggest one-day rise in yields for the bond since the 1980s.

[TheDave]

Weak demand for 30-year US Treasuries (http://www.ft.com/intl/cms/s/0/299b2f0e-c443-11e0-ad9a-00144feabdc0.html#axzz1UqRkGwKW)
An auction of 30-year US Treasury bonds saw weak demand from bidders, after a sharp decline in yields.

After the sale, yields on the 30-year bond were up 27 basis points for the session to 3.78 per cent. It was the biggest one-day rise in yields for the bond since the 1980s.

During times like this, 30 year notes are at a significant disadvantage. Luckily our debt is held mostly in <5 year T's.