Debt ceiling news 2014: The House of Representative passed a one-year extension to the United States' debt limit on Tuesday evening.
Sen. Majority Leader Harry M. Reid (D-NV) has already said he would pass the bill, although Sen. Ted Cruz (R-TX) may demand a 60-vote threshold on the deal. With U.S. President Barack Obama's signature, the nation would no longer face the threat of defaulting on its debt of $17.2 trillion within the next couple of months.
The deal passed by a narrow vote, 221 to 201, with just 28 Republicans supporting a "clean" extension of the country's borrowing power.
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Don't Fear China and Japan Owning More U.S. Debt
The U.S. Treasury Department said today (Thursday) that total foreign holdings of U.S. debt rose 1.1% in November to $5.72 trillion, putting foreign holdings 0.1% below the all-time high of $5.76 trillion it reached in March 2013.
In particular, China's holdings reached record levels, increasing 0.9% to $1.32 billion, and so did Japan, which boosted its holdings by 1% to $1.19 trillion. The two countries are the largest and second-largest foreign buyers of Treasury debt, respectively.
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Will United States Debt Holders Bail on Treasuries?
Since the mid-1990s, China and a host of other foreign governments have quietly acquired one-third of all United States public debt. Foreign holders of United States debt held more than $5.6 trillion in Treasury securities as of August 2013.
But continued debt-ceiling drama in the United States is starting to change that.
Four Things the Debt Ceiling Deal Doesn't Fix
While everyone in Washington right now is patting themselves on the back in the wake of Wednesday's debt ceiling deal, the reality is that it does little to address the nation's deepest budget issues.
True, the Band-Aid agreement will fund the U.S. government through Jan. 15 and lift the debt limit through Feb. 7.
Here are the four biggest issues that Congress ducked out on...
The Most Important Numbers to Know Today
200 Democrats and 19 Republicans support passing a continuing resolution with no strings attached to re-open government, according to a CNN poll of Congress. With three vacancies among 435 Congressmen, 217 votes is the minimum required to pass the measure. Senate claims it's close to a deal, but the question is how House Republicans will react - as the shutdown continues into its fifteenth day.
700% surges were seen in TWTR earlier this month. The zombie stock represents shares of home audio store Tweeter Home Entertainment Group, now traded on the pink sheets, but a one-time strip mall staple of the suburban bass head set. Tweeter went bankrupt in 2007, and shut its doors nationwide through 2008. But, some overeager investors mistook TWTR to be the hotly-anticipated shares of Twitter, Inc. The stock, which had been trading around one-hundredth of a penny, shot up to nearly $0.05, amid the heaviest volume in seven years. FINRA has since changed the ticker symbol to THEGQ, and shares have settled back down in sub-penny territory. There's no need to worry about picking up shares of Southern gourmet supermarket Harris Teeter, either. Those shares were subsumed by Kroger earlier this summer. As for what to do about Twitter stock - take a look...
all in one place?
What a Debt Ceiling Stalemate Will Do to the Market
Yesterday (Monday), Money Morning Chief Investment Strategist Keith Fitz-Gerald appeared on FOX Business' "Varney & Co."to make projections about what a stalemate on the debt ceiling will do to the market.
We are a little more than 24 hours away from the day that Treasury Secretary Jack Lew has said we'll exhaust the "extraordinary measures" and go over our debt limit. But even with the impending deadline, over the last five days the market has shakily climbed, with the Dow up 2.35%, Nasdaq up 1.16%, and the S&P 500 up slightly to 1.9%.
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Here's What Happens When We Hit the Debt Ceiling
With Congress moving like molasses and time running out, more and more Americans are wondering what happens when we hit the debt ceiling.
The short answer is that it would be bad - as in catastrophically, you've-never-seen-anything-like-this-in-your-life bad.
"[It] would be like the financial market equivalent of that Hieronymus Bosch painting of hell," Michael Feroli, chief economist at JP Morgan, told the Washington Post.
Brace yourself, because this is what a default would look like...
Why the Government Shutdown Is Good for Investors
The markets are already nervous over a stubborn group of Republicans threatening a government shutdown unless Democrats agree to defund Obamacare, or at least delay implementation of the healthcare law another year.
"A government shutdown starting next week is looking increasingly likely," Jim Russell, a regional investment director at U.S. Bank, told the Associated Press. "That will not be welcomed by the capital markets."
The S&P 500 has slid 2% since Sept. 19 as Wall Street watches yet another budget-battle spectacle unfold in Washington.
The problem is that the federal government only has enough money to keep the government's doors open through Sept. 30, the end of its fiscal year. Tea Party Republicans are using this deadline to try to defund the healthcare law.