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    “A Bunch of Morons in Washington”: Howard Davidowitz Handicaps the Debt-Ceiling Debate

    In conjunction with the ECB, Germany and France have reached a deal to allow for "selective" default on Greek debt. Judging by the reaction in financial markets, this counts as progress.

    With the euro rallying sharply vs. the dollar, the sovereign debt of Europe's PIIGS rose Thursday while Treasuries fell, commodities climbed and stocks surged as the "risk on" trade was back in favor. In recent trading, the Dow was up 1.2% while crude was up 1.5% and had earlier traded above $100 per barrel for the first time since June 10.

    Meanwhile, U.S. politicians continue to wrangle over a deal to raise the debt ceiling by the end of the week, which is when the Obama Administration says a framework must be agreed upon so there's enough time to get legislation passed prior to the Aug. 2 deadline.

    Which brings us to the question of the day: Who is handling their debt crisis better, America or Europe?

    Tempting as it may be to say "neither," the fact Europeans are now willing to accept a default on Greek debt — selective or otherwise — suggests the Continent is ahead of the Colonies at this juncture.

    "When somebody has debt that's impossible to deal with, you restructure the debt," says Howard Davidowitz, whose eponymous firm specializes in retail restructuring. "A lot of the debt has to be dead. Unless you restructure that debt, the problem will go on forever."

    Speaking of the situation in Greece, Davidowitz says "German taxpayers are not going to put up with this crap, nor should they."

    And the same can be said of American taxpayers.

    "Eventually the American taxpayer will get so fed up with these bunch of morons in Washington — Republican and Democrat — they are going to demand we take real action with real numbers; cut thru the crap and start dealing with this debt and we can do it," Davidowitz says. "Why did we say in U.S. 'the bondholders can't be hurt?' What the hell was that about? It was all mad."

    Like most observers, Davidowitz expects Congress will come up with a short-term deal to at least temporarily raise the debt ceiling and allow the madness to continue.

    "I think we'll get something for six months, a deal these morons can get their arms around…and keep screwing around, kicking the can down the road and do nothing," he says.

    In other words: It's the same old story. Same old song and dance, my friends.

    Aaron Task is the host of The Daily Ticker. You can follow him on Twitter at @atask or email him at altask@yahoo.com

    For more Daily Ticker coverage of the debt ceiling debate see:

    U.S. Hits the Debt Ceiling: What Does It All Mean?

    Debt Ceiling Deadline Pushed Back: Will the GOP Budge?

    Rep. Levin: GOP "Playing With Fire" On Debt Ceiling Vote

    Debt Ceiling Vote a "Political Sideshow", Mish Says: Real Issue Is "Govt. Spending Run Amok"

    "No Downside" to Not Raising the Debt Ceiling, Says Chris Whalen

    Debt Ceiling Debate: The GOP Is "Blackmailing the American People," Sen. Bernie Sanders Says

    Debt Ceiling Uncertainty: Big Banks Take Evasive Action, The FT Says

    Deep Recession & Financial Chaos: "Very Dark Scenario" If Debt Ceiling Isn't Raised, Zandi Says

    Finally, Someone Is Talking Sense On Our Huge Debt And Deficit Problem — President Obama

    What If? "Huge Interest Rate Risk" If No Deal on Debt Ceiling, David Walker Says

    "Dangerous Precedent" Being Set in Debt Ceiling Debate, Galbraith Says

    It's Time to Roll Back Big Government: Rep. Ron Paul Says 'No' to Debt Ceiling Increase

    Jared Bernstein's Getting Nervous About Aug. 2 "But I Think We'll Have a Deal"

    Yahoo! Poll

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    347 comments

    • Ajit  •  10 months ago
      It just goes to prove the point that you cannot have the same people solve the debt crisis that created it. This blame game will only prolong the cris
      is but the politicians do not care. We are so polarized as a nation that we have lost all sense rational thinking. There are folks that truly believe that the problem is a Republican or Democrat one. We all created it. We voted for all these folks and continue to do so. We deserve what we have in Washington. Just imagine that we as an individual going to a bank asking for our credit limit to be raised because we are in default-now that may not be the problem technically at the National level but the concept is similar. Morons in DC please focus and help the country not your re-election.
      • Myco 10 months ago
        Wasn't he supposed to unite us all? Funny way to do it by demonizing anyone with a different opinion.
      • Meca-leca-hi-meca-hiney-h ... 10 months ago
        And part of our problem is still health care costs. Germans pay 8% for socialized medicine and it may be built into the tax schedule in Canada. Of course we cannot go forward with Med costing 18% of GDP and no end in sight.
      • Mark 10 months ago
        These idiots didnt create this mess, it was created some 80 years ago with the first socialization of our country. What is happening is that they cant stop spending or creating new socialist programs. It all needs to be fixed and it will hurt but it needs to be done.
    • vet ww 11  •  10 months ago
      Finally some one who calls it the way it is. Congress should all be impeached and start over with no professional politicians. Time limits would help reduce these morons from entrenching themselves with life time income and health insurance.
      • Eric 10 months ago
        We just did throw out the incumbents and put in a bunch of beginners to replace the professionals. That's what caused this mess. Far from entrenched politicians, these are mostly the freshmen causing the problem.
      • Saylor Ramone 10 months ago
        Oh how many times have I heard that... let me count the ways. "throw the bums out!" is what we ALWAYS say! The problem is the new bums aren't much better! A nation of idiots! Like any of us could do any better!
      • john hunter 10 months ago
        Why not put in the people who stood up for our liberties. Brooksley Born for example. As head of the cftc in late 90s, she was persecuted for going up against Larry Summers - who wanted to repeal Glass Steagle act (in face of Long Term Capital Management derivative 5 billion dollar hedge fund blow up). Look what happened with no Glass Steagle -- goldman sachs makes illegal 13 billion dollar naked short cds bet with aig and blow and hand bill to taxpayer. Thanks Larry.

        Brooksley Born had the courage to stand up against these tyrants. Why not vote her in to save America?????
    • scott b  •  10 months ago
      the real problem is that we can only vote for the people that run. if you only have a choice between two idiots then an idiot is all youre going to get
      • Bongo Drums 10 months ago
        Of course all we have is morons in government. Why would the best and brightest be stupid enough to seek public office in America? They get paid practically nothing, and then attack, criticize and investigate them endlessly.
      • markw 10 months ago
        As long as only the well heeled can afford to run,you will never have a person that represents the general population.
      • John W 10 months ago
        Steve, mmm, don't think so... Rank-and-FIle get $178K / year! Not too bad. They also get health and retirement benefits. They're in the public light, that comes with criticism.
    • Doctor Doctor  •  10 months ago
      They will raise the debt ceiling by juking the numbers and lying to the public. They always have and they always will. In the meantime, they will focus on what is important to them - GETTING RE-ELECTED
      • Martha 10 months ago
        It is all about greed - greed - greed - and propaganda - then add Grover Norquist to the mix.
    • Taxed but no Representati ...  •  10 months ago
      Our morons are definitely bigger morons than theirs.
    • Mark  •  10 months ago
      The bozos in Washington aren't the morons; all of us that voted them into office are!
      • Ray 10 months ago
        I don't think you had any choice did you?
      • Raymond Chow 10 months ago
        Ray the answer is yes we did but we chose the bigger bozo because we are bunch of bozos in this country. If you question the US general population for anything about the government and constitution they know crap but if you question them about sports they know everything all the way to who won the world series a century ago.
      • johneb 10 months ago
        one pile of garbage against another.need REAL choices
    • Ed  •  10 months ago
      Lee Iacocca was also right when he called them " A bunch of clueless bozo's in Washington" back in 2007. Even a change in administration didn't change WHAT WE THE VOTERS SENT THERE AND KEEP SENDING BACK! Clean house America!!!!!!
    • Boar  •  10 months ago
      Agree...big time morons in DC and NOT ONE OF THEM serves the people. They all SERVE THEIR OWN INTERESTS.
      Its as though DC is inviting financial disaster and all that follows including violent civil unrest not to mention total anarchy. Its amazing to me that there is'nt one selfless elected leader in this nation who serves the people long before he serves him/herself. Its called LEADERSHIP and its so rare one has to look in the dictionary to find it.
    • Bongo Drums  •  10 months ago
      We love blaming "the morons in Washington".

      You know, the guys we keep re-electing over and over.
    • Army Two  •  10 months ago
      people you know what DERELICTION OF DUTY IS? all government should be remove from duty bacause all of them have not done the job they are suppose to do all of them
    • Tim  •  10 months ago
      "Eventually the American taxpayer will get so fed up with these bunch of morons in Washington — Republican and Democrat "

      I have been fed up for many years and I'm waiting for the rest of my Anericans to catch up ! Vote them all out.
    • Lords of Illusion  •  10 months ago
      The Central Banks around the Globe are massive fraud and welfare for the privelaged class.

      The ability to create MONEY as DEBT our of thin air.

      The rest of you are simply cattle and a means to an end.
    • Peter  •  10 months ago
      The focus of most of these bozos is re-election and ideology, rather than saving the economy. It's time like these that i wonder if a benign dictatorship would be more effective. than
    • Pamela  •  10 months ago
      Absoutely the voters are morons for voting these stubborn self-serving airheads into office.
    • Jimbo  •  10 months ago
      Wow... tons of vehement cries for revolution! And yet you all continue to sit on your thumbs. Such has been the norm for 2.5 years now.
    • Tom Troxler  •  10 months ago
      We keep putting them there, so maybe we got the gov't that best mirrors us
    • John  •  10 months ago
      Davidowitz is dead wrong...They are not a bunch of morons....They are the smartest ...They have convinced us to vote for them....we are the morons..Our leaders have no interest in the US only themselves...when are we going to learn.....God save us ignorant ones.
    • Tex  •  10 months ago
      By the end of the last Congress in Dec 2010, we were calling Congress clowns. Now the new Congress we call morons. By 2012 we will need more synonyms: airheads, birdbrains, dumb clucks, dimwits, dips, dorks, dumbbells, dummkopfs, fatheads,
      imbeciles, know-nothings, lamebrains, nitwits, etc.....or to be PC: mentally challenged.
    • David H  •  10 months ago
      I love his guy. It's a cathartic experience every time I see his appearances here on the Daily Ticker. One of the few things Yahoo! is doing right is producing their own content like this stuff.
    • Joe Johnson  •  10 months ago
      If our representative had the interests of the American people at heart, we never would have gotten into this precarious situation. Both parties should be profoundly ashamed of themselves for putting the our entire financial system at risk.

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