View Full Version : U.S. Issues Washington Is Annoyed at Wall Street's Failure to Panic
07-30-2011, 11:31 AM
pathetic is all I can say..
07-30-2011, 11:38 AM
The funny thing here is that I bet a lot of dems were counting on a meltdown to prod holdouts into a compromise. It didn't happen because Wall Street collectively said "we don't believe you, you are obviously going to increase the debt ceiling because not doing it would be utterly insane" while some of the banks quietly hedged their bets.
At this moment, I believe the debt ceiling will be increased, and obviously the investors think so too. You can't expect a lot of smart wealthy people to trade against their best interests and voluntarily lose money. (sell out now, you miss the huge rebound when a deal is reached)
We won't see a global market meltdown and a 2nd deep recession unless the unthinkable happens, or appears that it is about to happen, and it probably won't abruptly plunge on August 3rd if there's reason to believe we'll have a deal in a few days. A short hiccup where a few government agencies have to wait a week for money is not going to bother anyone.
07-30-2011, 11:40 AM
I bought IWM calls on Friday with the expectation that after we passed the ceiling we'd get a bump back over last week's decline.
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