Money Men Want a Debt Deal – Now

[Vi-Jay 218]

Money Men Want a Debt Deal – Now

By Chris Stirewalt

Published June 09, 2011

FoxNews.com

Markets Mandate Deal on Debt

“He sent his vice president to negotiate. What? Maybe once a week? Twice a week? We are facing a debt crisis and our president is just phoning it in.”

-- Sen. Ron Johnson, R-Wis., at a press conference.

Capitalists love certainty. They ultimately care more about predictable rules than what the rules specifically are.

So one can imagine how much capitalists hate the current situation in Washington.

Lawmakers have been unable to make a deal over President Obama’s request that the nation’s $14.3 trillion debt limit, which was bumped up $1.9 trillion in February 2010, be increased yet again.

In the process, they have piled more and more things “on the table,” as in “everything is on the table.” That means tax rates, government spending, long-term entitlement and welfare payments and even defense policy are all, to varying degrees, up in the air.

The economy is facing a lot of what the administration deems “headwinds” or “bumps in the road” – like the Japan tsunami and high gas prices – but there is also the overarching problem of uncertainty.

While some of the issues, like the president’s health-insurance overhaul, have to wait for court decisions or the 2012 elections to be resolved, the current mess over debt, spending and budgets is doing plenty to quell the animal spirits of investors and business leaders.

The message rising up from economists across the spectrum is that Washington must move quickly to come to a conclusion, whatever it is. With a government shutdown, rising interest rates, tax hikes and massive cuts all in the mix, the money needed to keep the economy from slipping deeper into recession will not materialize.

This is a capital strike and as Vice President Joe Biden enters his latest round of negotiations with Republicans and moderate Senate Democrats over how to do a deal, he knows that the trajectory of the economy, and, by extension, his own chances for re-election are at stake.

Power Play suspects the White House is getting ready to cut a deal.

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Watch the gov get a budget/debt deal cut and watch the hiring tick up.

The Fed's quarterly report documents wealth, debt and savings for corporations, governments and households. It covers most of the financial transactions that take place in the United States.

It found that corporations are still hoarding cash. Excluding banks and other financial firms, companies held $1.9 trillion in cash at the end of the quarter. That was slightly more than in the previous quarter and set another record.

The reluctance of companies to spend more of their cash helps explain why job growth has been slow since the recession ended. The unemployment rate is 9.1 percent, slightly higher than when the year began.

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[Darnell 8,479]

Biden seems more of a 'back-room dealer', and good at it, as compared to his boss. ((Seems to be))

[Vi-Jay 218]

Biden seems more of a 'back-room dealer', and good at it, as compared to his boss. ((Seems to be))

Hmmmm.., OK.

[Mr. Big Dog 10,747]

Biden seems more of a 'back-room dealer', and good at it, as compared to his boss. ((Seems to be))

Biden knows Congress. He's been part of that institution for ages. Yes, he knows how to cut deals and he knows how to make shite move. On top of that he's got a good bit of foreign affairs expertise. It's why he's got the job that he currently holds.

[Darnell 8,479]

I like him, mostly. His Boss, not so much.

[Mr. Big Dog 10,747]

I like him, mostly. His Boss, not so much.

I gathered as much.