and this applies in a way to all stocks. If we default on our debt, one would conclude that our interest rates will SPIKE up. The question is to where?
If it spikes up to 5% or higher(and why not in the short term), then despite the default, the interest rate becomes more attractive than stocks because it will still have that idea of being risk free despite the default(as the default is not because we can;t raise the debt ceiling and pay our bills, it is just being used as a pawn by those governing our country and messing with people's lives).
But according to the rules of this "game", the US by default(pun intended) will have to offer a more attractive interest rate going foward as they defaulted on their debt and become "less reliable".
So in that game, which nobody seems to be talking about on CNBC because they are not real traders(just jokers collecting a salary pretending they understand this game), stocks will seemingly sell-off drastically as the interest would be much better than most stocks trading at all-time highs or near them. They wuld have to correct to become equally attractive or more attractive or so one would think.
But then what about the other side of the coin...that by defaulting, the US becomes seen as unreliable and stocks in comparison become more attractive as a result of THEIR reliability, because those good ones pay their bills and create a return.
This is why it is almost impossible to play the market short term; ou cannot know for sure which way the powers that be will blow the wind.
CNBC spreading the fear. Goldman loving it, Morgan loving it, trading brokerages LOVING it. I think time has shown you can;t time these things and whatever happens, happens. Iff you are playing over your head, sure you're going to pay, but if you aren;t, one should not be too concerned.
The guys who are doing this though seem like criminals. How these guys can do this to the country, acting like this, and pretend they are "serving the country".
Just sick and making people care less and less about pretty much everything.