First, what happens next:
Deal or No Deal, [the US] AAA Rating is Toast, reports Seeking Alpha. This is the process for August 2nd, should no debt ceiling deal be arranged. There will be A briefing on Friday, after market hours, to outline who does and who does not get paid as of August 2nd. Credit Suisse's projections are that a three-month delay in debt ceiling hike results in a 15% drop in the US stock markets.
Second, something to watch:
This may be nothing, it may be the fuse: overnight credit repo rate surges. A "repo" trade is a "repurchase agreement," and is similar to a loan; you sell something (the collateral) with an agreement to repurchase it at a given time (the expiration of the loan). Because it's two sales transactions instead of a borrowing, it's not technically a loan. The repo rate jumping means people are charging more to throw this money out there. It's a tiny change in absolute numbers, but huge in percentage, and - according to Zero Hedge, anyway - incredibly leveraged.
Third: Corruption of Note:
James K. Galbraith: Without the rule of law, the financial sector is no use to anyone except those who own it and the politicians they own. Over at Zero Hedge, discussion on the impact of the corrupt financial system, changes being made in the SEC, and too-big-to-failism.
Inept Obama “Anybody but Warren” Stance Reveals Fundamental Bank v. Middle Class Fault Line, and indeed, oh look, she's gone.
The Fed’s Killing the US Dollar Behind the Scenes - taking an "out" on the debt via devaluation. Printing works as long as nobody notices. Sadly, everyone is watching.
And fourth and finally, various articles of interest:
Mish Shedlock thinks the Boehner plan is a joke and waste of time, considers Mr. Boehner's credibility seriously damaged, and slams the GOP for not taking earlier, better deals.
S&P lowers Greek government credit rating to CCC with a negative outlook. Let's not go here. Let's not go here, either. Mind you, Moody's and S&P are jokes at this point - I mean, they're starting to hedge off actually downgrading US debt. I wonder who got a phone call? And at least one major analyst is willing to delist them as acceptable agencies; good for her.
Consumer bankruptcies are up 4%. from first quarter. US government expected to pay half of health care spending by 2020. This substantially outpaces projected economic growth, assuming we even get that, and will obviously put yet more serious pressure on budgets.
Good luck, everyone.