Debt ceiling deal reached

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Debt ceiling deal reached?

After wrangling for over two months President came out and announced a Debt Ceiling deal is reached, allowing 2 trillion dollars in long-term borrowing. The announcement came just before Asian markets were ready to open and trade. Thus warding off a widespread panic and selling as of August 2, 2011.In calamities leaders always seem calm, so did this President. Officials say that House speaker John Boehner called White House, that a deal is reached and both parties are in agreement.

Harry Reid also confirmed that a possible agreement is reached with Republicans and Mitch McConnell said “this will make sure significant cuts in Washington spending” and he assured the markets that a default on U.S. Debt obligations won’t happen as the lawmakers were in agreement. This is great for the country and the world financial markets. Now there is uncertainty and firm outcome and that is what the markets like and love. The US economy would also benefit from this agreement and the reduced spending will forge a better confidence in the public’s mind.

Among the highlights of this deal:

  1. President will be able to raise the debt limit by 2.1 trillion till 2013.
  2. The first cut in spending will come at $1 trillion and out of that $350 billion in defense cuts
  3. A bipartisan committee will oversea further cuts for $1.5 trillion and will report Nov 23 2011.
  4. Congress will vote on committee recommendations by December 23, 2011
  5. There can be further cuts in defense and in the second round in 2013.

Had this announcements not being made in time, Asian markets could have crashed or gyrate and the effect could have spread to US markets. Since a deal is in place the market should be thankful and ready to take off, since its extremely oversold and many leading stocks are at entry levels.

If you are in the market , look for NDX, PCLN, NFLX, DECK, SPY, IWM, CF and CMG others. Leaders will go up first when the market recovers and comes back.

4 Comments For This Post

  1. Tyrone the animal Says:

    Most of these cuts are what Republicans wanted 350 billion cuts in defense should kill Obama lead wars and bring back our troops home.

  2. F*you Says:

    You are a Government shill paid to mouth for the big corporations and big money 🙂

  3. admin Says:

    Thank you for your appreciation Mr.F*you.We are not shills for anybody.
    What is you real name Mr.F*you ?

  4. Jason Says:

    Meh. Figures.

1 Trackbacks For This Post

  1. Stocks Crash, Economy stalls, what else is new? | FinanceMoz.com Says:

    […] up the market been very uneasy on it. Last two weeks have intensified this fury to a new level. The Debt ceiling debate, Constant wrangling in Washington, TV posturing by members of Congress and a pathetic process left […]

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