Actually that's not true. They may not default on Aug 2nd but it can still happen. Yes they can prioritize which bills they pay for awhile but fairly quickly they will hit their head on that ceiling.
They had to raise it 17 times when Reagan was president and 4 times with Clinton. What's different this time are the new members of the House of Reps- the Tea Party idiots. They are extreme idealogues who think default is preferable to further spending.
You are right that a ratings downgrade is probably in the wind and THAT will have an even greater impact on SSN and all stocks. It will be sentiment driven at first but eventually the higher cost of borrowing for the US will have a knock on effect to China and then Australia.
Sorry, bit off topic but cmonaussie's response deserved a clarification I thought.
I'm sitting on the SSN sidelines now too. Hopefully not for too long.
SSN Price at posting:
14.0¢ Sentiment: Hold Disclosure: Not Held
