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%.To continue reading, please click here...
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.Read more...
U.S. Debt Ceiling Debate: What Will Happen
A U.S. debt ceiling debate is once again on Congress' agenda. Congress has about three weeks to pass a budget, and the White House has said that U.S. President Barack Obama will not negotiate over raising the 2013 debt ceiling provisions.
We've seen this script before on debt ceiling deadlines, and with so many other pressing issues. Congress will again kick the can down the road.
Before that, a brewing showdown will again unfold, one with distinct consequences for other forms of legislation and the country.
Stock Market Crash 2013: Four Factors Investors Need to Watch
Some call it a "perfect storm" and others a "financial apocalypse," but it doesn't matter what you call the fiscal headwinds facing the U.S. economy - just that you watch them, and the stock market "crash talk" they're stirring up.
With talk of the Hindenburg Omen, credit crunches, and struggling emerging markets, it's important to prepare for the potential impact of bumps ahead.