Does corporate have any plans for the US defaulting?

talan123

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#1
If the US defaults then the economy is just shot because credit is gone.

Does anybody know if there is a back-up plan for our business?
 
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talan123

talan123

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#3
Businesses cannot use gold bars as money.

There is going to be a complete collapse of credit and a massive inflationary problems. I was hoping for some kind of insurance plan or CDS...
 

Lady Fitting Room

Free from Target :D
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#4
Psh, knowing corporate, they'll inflate sales forecasts while cutting even more hours, then have store management tell team members to "make it happen". :thumbsdown:
 

commiecorvus

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#5
I think everybody is just holding their breath and hoping the Republicans start acting like grownups.
 
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#6
well raising the conversion goal to 1% Aug. 1 is surly going to help.....NOT! :blowup:













what i post is mine and mine alone.
 
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#7
call me crazy but I want the default to happen. This country needs it to happen. There is too much irresponsibility from US citizens at all levels whether they are poor, middle class, or rich. Time to reset and start over.
 
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talan123

talan123

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#9
That can't happen.

There are over 7000 different benchmarks in the entire world that depend on the dollar. If we default, then every single bank/government/institution will dump their dollars onto the market all at the same time. You want to talk about inflation? That's an easy 30% happening very quickly, beyond hyperinflation. That doesn't include the millions of government employee's who are going to stop shopping here.

I'd like to see Target/corporate having some CDS's here (Credit Default Swap or Insurance for when we do default.) If they don't have a strategy then we are all royally boned.
 
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#11
This really doesn't seem like a topic that would be discussed at the store level. I don't think you'll see much about this in the newest issue of News to Use :)
 
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#12
It's not going to happen. For reasons mentioned above, they have to get it done. Not hopefully get it done, they have to get it done.
And yet I want it to happen. Does that make me a bad person :-/ See people don't understand why I want it to. The main reason is because It's going to happen during my life time anyway, might as well get it done and over with while I'm young and capable of dealing with the fallout.
 
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talan123

talan123

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#13
I understand that and it doesn't make you a bad person but it does show a kind of narrow view.

The government will pass a debt ceiling but if it is after the deadline, then interest rates are going to skyrocket. The cost of rebooting the system is more than fixing.

I didn't know any of this until the financial crisis of '08 happened. 14 books and six documentaries later... I still have no clue what happened.
 
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#14
And yet I want it to happen. Does that make me a bad person :-/ See people don't understand why I want it to. The main reason is because It's going to happen during my life time anyway, might as well get it done and over with while I'm young and capable of dealing with the fallout.
I don't blame your reasoning, but it will do much more harm than good. Yeah, you're young, you can take blow a lot better, but I think you underestimate how badly this will affect us.

The fact is that we were on our way to a decade of surplus before the recession started in 2000ish and we started wars with no way to pay for them. Our debt is not an impossible task... Hell, our GDP is not even on the level of some other countries.
 

commiecorvus

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#15
For those of us with anything invested in this society not raising the debt limit would be catastrophic.
But I understand why younger folks would like to just get it over with.

Attached is one of the better memes on the politicians who would run America's economy over a cliff (with all due respect to Talan)
 
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redeye58

Hasta Ba Rista, Baby!
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#16
The infuriating thing is that 8 yrs ago we had a surplus! Yes, catastrophic things have happened (9/11, 2 wars) but I also remember Bush SENDING REFUNDS to people telling them to SHOP (how's THAT for a stimulus plan?)! This started with an 8-yr slide of mismanagement. During part of that 8 yrs, the GOP controlled the White House & both branches of Congress & THEY failed to reign in this disaster so blaming the current administration for not fixing this in 2 yrs is absurd at best. That the citizenry has such a short memory of WHO was in control when this fiasco began & would re-elect them (under a new banner) is equally absurd but you get what you pay for.
 
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talan123

talan123

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#17
It's actually going to happen...

I'd say the chances of them getting it done in four days, during a weekend no less, is impossible.

So inflation is definitely is going to go up, our cost of borrowing is about to skyrocket which means tax hikes at the federal level.

On the 3rd, the markets will probably not react too much but the hedge funds are going to. You are about to see a massive run on the banks again, along the lines of Lehman Brothers collapsing because people won't trust our debt but they do trust our dollar.

I hope corporate has been stacking the sand bags in this case. Things are about to get messy. After the Hedge funds, they are then going to bonds, and finally stocks.


/As for the politics... The country was angry at Wall Street which gave President Obama a shot at fixing it. He didn't possess the personality to forcibly present his case. Wall Street was let off the hook and that Anger was left to free float and to it's credit, the Tea Party took advantage of it. They didn't know what they were doing afterward but still...
 

MrMrIce

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#18
The infuriating thing is that 8 yrs ago we had a surplus! Yes, catastrophic things have happened (9/11, 2 wars) but I also remember Bush SENDING REFUNDS to people telling them to SHOP (how's THAT for a stimulus plan?)! This started with an 8-yr slide of mismanagement. During part of that 8 yrs, the GOP controlled the White House & both branches of Congress & THEY failed to reign in this disaster so blaming the current administration for not fixing this in 2 yrs is absurd at best. That the citizenry has such a short memory of WHO was in control when this fiasco began & would re-elect them (under a new banner) is equally absurd but you get what you pay for.
It's like a janitor walking in a bathroom covered in feces and getting blamed for having it not cleaned in time.
 
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