Weekend Reads: Debt Debacle Edition

There’s no way around it- this week has been dominated by the debt ceiling debate. It’s been driving market activity, saturating the blogosphere and getting a little too close to reality for comfort. If a deal isn’t reached by the end of business today, the government will have administration officials briefing the nation on what their plan of action is with the money they have left. While we dig in for the 11th hour, here are some excellent articles providing diverse perspectives on the issue:

Markets

  • Investors finally getting shook up by the lack of debt ceiling resolution (WSJ)
  • With the government close to defaulting on their treasury debts, investors flock to… treasuries? (EconomicPedia)
  • The debt ceiling has a 1% of being a “black turkey”? (Bloomberg)

Consequences

  • U.S. Dollar Dominance Questioning Hitting a Peak? (ZeroHedge)
  • The default-fueled haircut to come (Money Morning)
  • CME Comments on Potential Default (no mention of t-bills, of course) (MarketWatch)

The Drama

  • Dumbest Moments in Debt Ceiling History (MoneyCNN)
  • The government spending patterns that got us here in relation to GDP (Ritholtz)
  • Who owns the treasury debt? (Ritholtz)
  • Place Your Bets: Odds on a deal being reached (Investing with Options)
  • The Man Holding the Fate of the U.S.  Credit Rating (NY Post)

Solutions

We know it’s heavy stuff, so we’ve also included a rousing round of reads to help make you forget that the situation isn’t really funny anymore. Just for fun…

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Disclaimer
The performance data displayed herein is compiled from various sources, including BarclayHedge, RCM's own estimates of performance based on account managed by advisors on its books, and reports directly from the advisors. These performance figures should not be relied on independent of the individual advisor's disclosure document, which has important information regarding the method of calculation used, whether or not the performance includes proprietary results, and other important footnotes on the advisor's track record.

Benchmark index performance is for the constituents of that index only, and does not represent the entire universe of possible investments within that asset class. And further, that there can be limitations and biases to indices such as survivorship, self reporting, and instant history.

Managed futures accounts can subject to substantial charges for management and advisory fees. The numbers within this website include all such fees, but it may be necessary for those accounts that are subject to these charges to make substantial trading profits in the future to avoid depletion or exhaustion of their assets.

Investors interested in investing with a managed futures program (excepting those programs which are offered exclusively to qualified eligible persons as that term is defined by CFTC regulation 4.7) will be required to receive and sign off on a disclosure document in compliance with certain CFT rules The disclosure documents contains a complete description of the principal risk factors and each fee to be charged to your account by the CTA, as well as the composite performance of accounts under the CTA's management over at least the most recent five years. Investor interested in investing in any of the programs on this website are urged to carefully read these disclosure documents, including, but not limited to the performance information, before investing in any such programs.

Those investors who are qualified eligible persons as that term is defined by CFTC regulation 4.7 and interested in investing in a program exempt from having to provide a disclosure document and considered by the regulations to be sophisticated enough to understand the risks and be able to interpret the accuracy and completeness of any performance information on their own.

RCM receives a portion of the commodity brokerage commissions you pay in connection with your futures trading and/or a portion of the interest income (if any) earned on an account's assets. The listed manager may also pay RCM a portion of the fees they receive from accounts introduced to them by RCM.

See the full terms of use and risk disclaimer here.