⭐ Breaking News ⭐
Mitch McConnell has apparently floated the idea of a short term debt ceiling increase. There's a vote scheduled today on a separate bill that would suspend the ceiling until December 2022 that McConnell had said he planned on filibustering. That appears to still be the plan. The proposal would only cover things through next month. Apparently McConnell is beginning to see that the Democrats aren't going to get this done in time without Republican support. This comes on the heels of a meeting between President Biden and "major corporate leaders." President Joe Biden enlisted financial and corporate leaders to help him pressure Republicans to stop blocking efforts to suspend the U.S. debt ceiling, warning that the government faces a first-ever default that would tank the economy. This also comes on the heels of Senator Manchin shooting down any hopes the Democrats had at adding an exception to the filibuster for debt ceiling votes. Even after the McConnell proposal Goldman Sachs said "While financial markets have come to expect last-minute solutions out of Washington, the current predicament is somewhat different from any of the other debt limit deadlines over the last few decades that have been resolved at the last minute,” They went on to say "If Democrats believe that Republicans will cooperate absent any other option, they might delay the other option—the reconciliation process—long enough to take that option off the table. Even at that late stage, Republicans might not cooperate if they still believe the reconciliation process is an option or doubt the credibility of the Treasury’s projected Oct. 18 deadline." So it appears we are significantly closer to a short term solution but by no means are things finalized. The market is trending up on the news however, lending credence to the notion that the volatility over the past few weeks has absolutely been influenced by this debate. Still a long ways to go but we're at least moving somewhere.
**Update**
It appears the Democrats have gained approval from the Senate parliamentarian to deal with the debt ceiling through the budget reconciliation process. While there isn't enough time to do this before 10/18 it would indicate that McConnell is interested in allowing enough time for the Democrats to unilaterally pass a long term suspension/raise.
Sources
Senate GOP leader McConnell offers short-term debt ceiling extension following Biden pressure
https://www.cnbc.com/2021/10/06/mitch-mcconnell-may-offer-short-term-debt-ceiling-extension-following-pressure-from-biden.html?__source=androidappshare
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McConnell Floats an Increase Through November: Debt-Limit Update https://www.bloomberg.com/news/articles/2021-10-06/treasury-seen-out-of-cash-as-late-as-nov-2-debt-limit-update
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https://www.bloomberg.com/news/articles/2021-10-06/treasury-seen-out-of-cash-as-late-as-nov-2-debt-limit-update
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https://www.bloomberg.com/news/articles/2021-10-06/manchin-rejects-altering-filibuster-rule-to-raise-debt-ceiling
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Democrats Can End the Debt-Limit Drama, If They Want https://www.bloomberg.com/opinion/articles/2021-10-06/democrats-should-end-the-debt-limit-drama
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#tcardizzle #debtceiling
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Mitch just wants to be the hero of the story.
@Damberville when you look at it, he's only interested in making the Democrats unilaterally pass an unpopular debt ceiling raise. They didn't have time before so he's giving them time. He's still not voting on a long term raise
So in English… Is this good or bad? 🤨🤣
December 2022 is a year and a month from now @tcardizzle
Alvin@alvin2040
They don’t need the GOP. The problem is they can’t convince Senators Manchin and Seema on their 3.5T budget. They are both Democrats and more closely aligned than any GOP Senator. Some politicians don’t care if future generations pay for their corruption. If you want to be a millionaire with no knowledge of markets and business be a politician.
@ErnieMcrackin no McConnell is proposing December 1, 2021. The Democrats have a bill being voted on today to suspend until December 2022 but McConnell is still planning on filibustering it.
I really hope this gets cleared up soon! Was reading this yesterday — https://www.cnbc.com/2021/10/05/here-are-the-3-major-economic-deadlines-facing-congress-by-year-end.html
@nvknows you have to also remember that when this happened in 2011 the US credit rating was downgraded IN SPITE of them passing a last second raise. So they need to not only do it but do it immediately or risk at least 2 of the 3 credit rating agencies lowering the rating for the United States (S&P Global, Finch).
Ok got it after I commented, guess I should read BEFORE I comment 😂
They need to abolish the ceiling. If you want the best explanation as to why check out this absolutely dead on article by Nobel prize winning economist Paul Krugman
https://www.nytimes.com/2021/10/01/opinion/biden-coin-democrat-republican-debt-limit.html
@ErnieMcrackin no worries! When I was proofreading I thought that might not have been completely clear but just went with it anyway
Politician is too much work and I have to deal with people all the time. Thanks, @alvin2040 but no thanks, I will take the easier road of learning the market and business.
@theitalian1 it's lukewarm. On the plus side it does extend the time Democrats have to push through a solution. On the downside we will be right back here in a month. So.. not great but better than terrible
@Damberville yes but to learn the markets means to learn politics because they are very much intertwined.
True but I can learn politics without being a politician.
@Damberville Seems to be the case with every politician! They don’t really care about us.
Mitch needs to enact an age ceiling on serving in politics.
I agree with @tcardizzle . The GOP wants to make it very clear that this debt ceiling for the upcoming 3.5T bill is 100% Dems doing. But only a few will see pass “orange man bad.”
Let's view this as a step in correct direction and continue momentum forward
@realDominix first off the debt ceiling only pays for existing spending. The existence of it is insane. It's spending that has already been approved by Congress and signed by the president at the time that now has to be reapproved after it is spent. Does that make any sense to anyone? We're the only country in the world with this idiotic requirement. Second. There is no $3.5 trillion bill. It hasn'…See more
Robledo@nnlerr
Thanks for putting this out and your insight.
The 3.5 T is the ultimate proposal that the Dems want to pass. The only reason it hasn’t been passed is because there are still good Dems who see how crazy the 3.5T spending bill really is. Progressive Dems want to hold hostage the 1.5T because they know it’s a bipartisan bill, which is “reasonable” enough to get both parties find common ground.
The GOP wants to use the debt ceiling to stop that 3…See more
Turtle man strikes again
@abigalvonnormal ,You got that right!
Stut Dog💵@stutdog
Ditch Mitchell. Old stinking bigot. Retire already.
Great explanation of this news update. Good work Todd. I Hope the best for this country.
