A default would be bad

[Forever_frost]

Too expensive? Best I recall it was because viewership was low, and now that it's been out for a while it's gained a cult following, which is why the studios greenlit Serenity. I want more of that story, one season and a movie wasn't enough for me. IMO.

And Fox aired the series out of order so it made zero sense.

[no4njnk]

We will not default, it is just a scare tactic.

[Binky]

I don't care. Its a game, doesn't do anything except set things up for the next election.

Then it'll just happen again.

and again.

and again.

If they want to drive the country off the cliff, then so be it. I've got 30yrs or so left on this planet and don't really give a fuck anymore about what people in the future will have to deal with.

[ELVIS]

does chrissy need a hug this morning? come here you big lug!

god bless.

[racrguy]

And Fox aired the series out of order so it made zero sense.

I didn't know that.

<-- part of the cult following.

[slow99]

We will not default, it is just a scare tactic.

Yep. Read up on the overnight repo market if you aren't familiar with it:

http://www.forbes.com/sites/richardfinger/2013/10/04/the-u-s-debt-ceiling-fallacy-agreement-or-not-there-will-be-no-default/

[racrguy]

Yep. Read up on the overnight repo market if you aren't familiar with it:


http://www.forbes.com/sites/richardf...be-no-default/

Huh. Learn something new every day.

[War Machine]

I'm not really following what's going on, but it looks like neither side is budging. If we do default, I can only assume shit will be worse than 2008 with the housing crash

[slow99]

Since my last update, published on October 3rd, a combination of better than expected tax receipts and a modestly higher balance of “extraordinary measures” available suggest that the Treasury will have sufficient cash on hand to pay bills through the end of October. This pushes the “drop-dead date” out about a week from where we had previously spotted it.

Treasury Secretary Lew has sent several notes to Congress indicating that Treasury will run out of borrowing authority by October 17th and that they will only have $30 bln in cash on hand at the end of that day. Compared with Lew’s expectations, our forecasts for Treasury cash balances suggest that Treasury will either have about $10 bln more headroom under the debt limit or cash on hand by that date (it makes no difference which), depending on bill auction sizes between now and then. It is important to remember that the day that Treasury runs out of borrowing authority is NOT the same as the day when Treasury runs out of cash or potentially defaults. Maturing Treasurys create room under the debt limit, so even if the debt limit prevents Treasury from issuing new debt that raises cash, it does not prevent Treasury from conducting auctions that refund maturing debt. They can simply scale the size of the auctions down to the amount of debt that matures on the settlement date.

Given the revised outlook for Treasury cash flows, we do not see significant risk that Treasury runs out of cash before the end of October. This view may change over the next few days, given the fact that daily tax receipts tend to be volatile and that cash balances are projected to be on the light side from October 24th through the end of the month. We will continue to provide updates as new information comes in for as long as it takes Congress to raise the debt limit. At this point, it does not appear that much momentum is building for a compromise on funding the government or raising the debt limit so this could still be an issue by the end of the month.

If the debt ceiling is not raised following the mid-October coupon auction settlement, it is possible that there would be disruptions to the regular auction calendar.