News
Market Watch | Treasury takes new steps to avoid debt ceiling
Treasury Secretary Timothy Geithner on Monday took further extraordinary measures to keep the nation from hitting the $14.3 trillion debt ceiling.
Bloomberg | Do-Nothing Congress Shows Budget Paralysis
Since the newly seated, divided 112th Congress began in January, 13 measures have been signed into law by President Barack Obama. Four of those cut spending and keep the government funded through this fiscal year. A couple of bills named federal courthouses, and the remainder were mostly temporary extensions of existing programs.
Market Watch | EU opens door to ‘soft’ Greek debt restructuring
A European Union official left the door open to allowing Greece to discuss extending its debt-repayment plans, as the nation faces ongoing doubts about its solvency despite last year’s bailout.
CNN: Money | California's $10.8 billion budget battle
California Governor Jerry Brown unveiled a revised budget Monday that calls for a $9.3 billion tax extension, coupled with a $2.6 billion cut in spending.
Politico | GOP budget cuts would hit poor hard
After campaigning on the promise to roll back spending to Bush-era levels, House Republicans have overshot their mark and landed in the last years of the Clinton administration - at least in the case of cuts from labor, health and education appropriations important to the poor and working class families.
Econ Comments
RCM | Default 'Catastrophe' Explains Why Debt Ceiling Shouldn't Be Increased
Indeed, if "catastrophe" is the certain result of a U.S. debt default, it's fair to say that Treasury will not default.
Politico | Of budgets, hostages and deficits
U.S. treasuries are a core part of every important financial portfolio in the world. An unknown, but possibly large share is in portfolios that by charter or by law cannot be defaulted debt. So they will be forced to sell.
NYT | Who's Best at Cutting State Spending?
Which governors are the most successful at managing the budget gap, and which are overrated trimmers?
Minyanville | Will Failing to Raise the Debt Ceiling Have Disastrous Consequences?
With the debt ceiling issue looming overhead, it should be an interesting summer for US treasuries and the dollar.
Blogs
Big Picture | UPDATED: Debt Ceiling Limits (1939- 2011)
The regular debt ceiling limit dance seems to evoke a fairly standard set of behaviors in the two major US political parties: Whichever party is out of power (White House, or Congress or both) threatens not to support raising the debt ceiling. Which ever party is in power talks about how irresponsible and dangerous such a move would be.
The Economist: Free exchange | Against the ceiling
By early August, Mr Geithner says, the government will have run out of ways to stiff people without defaulting. At that point, very bad things will happen.
WSJ: Real Time Economics | No Guarantee Debt-Ceiling Deal Will Get Done
A split among economists over whether a debt ceiling vote should be tied to spending cuts highlights the risk of overconfidence, despite a consensus opinion in the latest Journal survey that the ceiling will be raised before an August deadline.
Marginal Revolution | Type the Title You Want People to See
This topic is so laden with “us vs. them” thinking that I am loathe to approach it. Still, here are a few thoughts:
