Thinking the Unthinkable: Investors Start Hedging Against U.S. Debt Default

Even if they up the debt ceiling and continue on "business as usual" the default will only get pushed down the road. When the piper does finally get paid it will not be in US dollars and it will be very ugly!

this country has zero financial education. we have to start teaching finance as a mandatory class in high school or we are going to die a slow and painful death. no one seems to understand that EVERYONE on tv is lying

Interesting to see how the country is all hoping that the politicians and government officials will do the right thing with the money. Who's money? Every cent the government has is from the people, yet the people have no say on how it is used and are having to pay wall street and bankers who are the same thing as politicians (how many of them go from positions from financials to D.C. and the other way around) for their mistakes. This is the definition of slavery. Work to stay alive and give all your money to your masters. The debt ceiling and any other issues however big or small will never fix the problem. You can only fix the problem by going to the root of the problem and completely overhauling the government just like our forefathers foresaw when they drafted the constitution and created the amendments; they knew that after a period of time governments will go bad (self-serving) and even stated that a revolution every now and then is the only solution. Instead of panicking and getting all mad and pointing fingers at democrats or republicans, wake up and look past the short-sighted facade dramatic theater that they are playing out in from of you and see the bigger picture which is the only thing that will solve the problem and redeem true democracy.

DEAR CONGRESS, Last year I mismanaged my funds and this year my family and I cannot decide on a budget. Until we have come to a unified decision that fits all of our needs and interests, we will have to shut down our checkbook and will no longer be able to pay our taxes. I'm sure you'll understand. Thank you very much for setting an example we can all follow.

Seems strange to hoard cash when it, in and of itself is a debt insturment.

The U.S. will create more fiat currency to temporarily solve its financial problems. There is 5000 years of history and hundreds of cases backing this up. What Bernanke is doing is not new. It is old, old, old. The rich have always traded their fiat currency for gold or other assets to avoid a govenment mugging.

I for one have always been a Republican but I promise I will never vote to reelect one person that is office today. Republican or Democrat. We desperately need term limits.

The Great Depression in progress: 2008-2018

If we citizens want to know whose fault this is, we only need to look in the mirror. We elected these people to congress. Yes, Henry, this game of political chicken is all about defeating President Obama from the Republican point of view. On the Democratic side it is all about a false populism. On both sides it is all about preserving the status quo and completing the massive wealth transfer of the last three decades (beginning with the Regan income tax cuts / payroll tax increases) which will conclude with 0.1% of the population owning 100% of the wealth.

When Rep. Nancy Pelosi (D-Calif.) gave her inaugural address as speaker of the House in 2007, she vowed there would be “no new deficit spending.” Since that day, the national debt has increased by $5 trillion, according to the U.S. Treasury Department.

“After years of historic deficits, this 110th Congress will commit itself to a higher standard: Pay as you go, no new deficit spending,” Pelosi said in her speech from the speaker’s podium. “Our new America will provide unlimited opportunity for future generations, not burden them with mountains of debt.”

wow the market dropped 50 points in about 10 minutes. is this what might finally wake the morons up?

I think there's enough money coming in to cover debt service on Treasury obl's. Why the talk about default?

Can we concluded that the last 3 years of pumping unlimited cash into the banks has been a FAILURE...Dems and Reps have screwed the middle class to the wall

No debt ceiling raise; no more free money; its time for the Fed to budget its income just like normal Americans do. If you don't have the money, then you don't buy the product. Shame on you Washington.

All this talk about what big investors can do about the debt date but nothing about how a consumer can protect himself. Is there nothing a retiree can do?

You have to wonder if this not being manipulated by politicians and banks so as to buy up cheap stocks that have gone down, settle the question of debt ceiling, and sell once the stocks have gone back up.

This is meaningless to most Americans. As less than 50% even pay taxes what more can you do to people that have nothing, feel like they are entitled to everything, and live off of the backs ov the other 50%. Parasites always find a new host.

There are millions of retirees who would like to see a jack up in interest rates. My parents have CD's and they are lucky if they get 2% with a long term. I love the way these guys say "If only they would compromise!"

"Unthinkable?" The only thing that is surprising to me is that investors apparently aren't bothered by $14.5 trillion in debt, only by the thought that Congress might not raise the debt ceiling.

Eric Cantor should recuse himself from the negotiations since he will make a pile of money shorting the bond market if the US defaults. Can you say CONFLICT OF INTEREST? Google the Wall Street Journal - Eric Cantor's Investment. Why is this getting no play on cable news?