Anyone here secretly hoping the US will default?

[gumpy]

I am. *flame suit on*

I'd love to see what happens, if all hell breaks loose or if the market gets over it, recognising it's just political games.

In the end when the US does allow the debt ceiling the rise things will return to normal again right?

 

[Hvr]

Well if the AUD$1 gets to USD$1.20 I'll be buying some for my trip next year. I couldn't see it staying that high for too long though.

 

[LiamR]

A small irresponsible part of me does, just to see what will change.

Will we go into another recession that is a thousand times worse? Probably not.

 

[Sifor]

I'm a bit weird like this, yes.

I love nasty storms too, but not when they directly effect me or hurt other people or their property..

 

[LiamR]

I love nasty storms too, but not when they directly effect me or hurt other people or their property..

I think I know what you are saying, I'm very similar.

 

[drron]

Well sometime they will have to bring their debt under control.Default would be painful but might be better in the long run.Just look at Japan-they have gone nowhere since 1990.Sharemarket,housing still well below 1990 levels.GDP is going backwards.No amount of fiscal stimulus has worked.

The most sensible thing the US could do is bring back all their troops and close all foreign military bases.But they wont.

 

[oz_mark]

I don't think they will default. The consequences of that, or their credit rating being downgraded, would be to export their debt to the world.

Having said that, I wish they would, and deal with their problems once and for all, rather than continuing to delay the inevitable.

 

[medhead]

Slight problem will be that they won't be able to pay their bills. All those federal wages, social security, defence contractors and etc. While it would be good for them to sort out there stuff, I can't see all that suffering for the effected people as being worth the benefit.It will be interesting either way.

 

[elbarto]

They'll just increase the limit on the credit card and carry on. But the US does need a long period of focusing on it's own internal affairs rather than playing world police.

 

[cove]

Hang on to that thought.Doesn't anyone realize our residential real estate market has been partly funded thru our banks out of the US market.If that messes up our Australian property values go down the dunny.

 

[pauly7]

Hang on to that thought.Doesn't anyone realize our residential real estate market has been partly funded thru our banks out of the US market.If that messes up our Australian property values go down the dunny.

Which they are starting to anyway!! I wouldn't want to be a seller at the moment that's for sure.

There are also reports that real estate agents are fudging numbers to try and make the decline in prices look less than it actually is... And hundreds of agents are also quitting the industry... They know...

Good time to be buying in Oz in the next few years... Watch the glut grow!

 

[cove]

Yes we sold 2 in the last tax year,paid the capital gains taxes on a slew of credit cards to get the FF points and we are very happy. Glenn Stevens may get an opportunity to prove he knows something and actually show us some value for money. A US default is like breaking bones in both of your feet....... You just don't know how connected things are and when you find out saying "oh dear"will not help!

 

[gumpy]

Boo it's resolved... back to business as usual...

 

[cove]

I did mean the year that ended 30th June,2010.

 

[simongr]

Why on earth would anyone want the US to default it can only have an adverse impact on the Oz economy...

 

[TonyHancock]

Why on earth would anyone want the US to default it can only have an adverse impact on the Oz economy...

The prospect of another year like 2009 does nothing for me either. Sleepless nights worrying about making staff redundant did nothing for me.

We are unfortunately reliant on the US economy. :-|

 

[gumpy]

Why on earth would anyone want the US to default it can only have an adverse impact on the Oz economy...

Because it's only a default due to politics not because of genuine problems. The day after they default if they raise the ceiling the problem would be solved. I just wanted to see what would happen if they did default.

The world would only be in chaos for the period of time the 'tards in Washington continued to play politics... Our fundamentals are strong and would remain unchanged in the longer run

 

[kamchatsky]

But the question is that whether US credit rating downgrade (regardless of whether they default or not) would be that bad? Afterall, who else are the investors go to get treasury bonds?

 

[gumpy]

But the question is that whether US credit rating downgrade (regardless of whether they default or not) would be that bad? Afterall, who else are the investors go to get treasury bonds?

a downgrade would be bad but not as bad as indicated. Most funds etc these days allow for AA bonds. If all the funds out their weren't allowed to hold bonds below AAA and US dropped to AA then it would crash the bond market...

 

[Simo]

I know the US Govt has approved the raising of the credit limit but is this going to raise it's head in another year or 2. IMO the us needs to stay at home and consolidate it's financial position and not be the police of the world. I also understand that the US is standing up to the bullies of the world and good on them for that.

I don't ever want to see the world go through another 9/11