Saturday, July 30, 2011

U.S. Default Fears Intensify



Default Dears Worsen As US Senate Blocks Debt-Ceiling Bill -- The Telegraph

The Democrat-controlled US Senate has blocked a Republican debt-ceiling bill, just two hours after it was narrowly passed in the House of Representatives.

Congress was earlier warned that it was "playing with fire" and President Barack Obama appealed for a compromise as the Tuesday deadline for a resolution of the debt crisis talks loomed ever closer.

The Senate is now instead debating a Democrat plan to avoid a US government default, a spectre that has created fears of a fresh world recession. The Treasury department says that the US will default on its financial obligations on Tuesday if agreement is not reached on raising the debt ceiling.

Read more ....

Update: Senate headed for critical debt vote Sunday -- Washington Post

My Comment: What is my take .... an agreement will be reached before Tuesday. But I also agree with Moody's that in the end it is not going to make any difference.

Update: China loses patience with US leaders who 'kidnapped' world finance -- The Independent

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