Obama nudges Wall Street: Maybe it’s time to panic over this debt-ceiling deadline

posted at 5:21 pm on October 2, 2013 by Allahpundit

Nothing complicated here. In order to strengthen his hand in negotiations, the president’s decided to try to kickstart a hopefully not-too-damaging market sell-off over the debt ceiling. The more the Dow drops tomorrow, the more Boehner and other moderate Republicans will think twice about letting this process play out all the way up to the deadline on October 17th. And if the market doesn’t dive sharply enough — maybe “only” 200 or 300 points — he can always nudge it again next week with more dire rhetoric. It might take losing a thousand points or even two, but damn it, if that’s what it takes to teach these tea partiers not to scare the hell out of markets by behaving irresponsibly, then oh well.

The irony is, some of the GOP’s critics have said, not without reason, that some damage from hitting the debt ceiling might be incurred before we actually hit it if investors lose faith that this is just brinksmanship and that the two sides will make a deal before the debt limit is reached. Well, here’s O telling them: Yep, your faith that the United States will certainly meet its credit obligations might be misplaced. And his party will forgive him for it, of course. Just two days ago, the Times published the latest in an undying series of liberal commentary calling on Obama to ignore the law and raise the debt ceiling himself, either via the Fourteenth Amendment or by, ahem, minting a trillion-dollar platinum coin. What’s a little market panic, which of course will be blamed on Republicans, compared to “solutions” as drastic as that?

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Love all the branches and am VERY grateful to ALL of them. Just don’t follow ‘em on the college gridiron. Thanks for the heads’ up.

UnderstandingisPower on October 2, 2013 at 6:36 PM

I do because Air Force is my school.
Unfortunately, they don’t have a very good football team this year.
In every other game of the year, I cheer for Army and Navy against anyone else.

dentarthurdent on October 2, 2013 at 6:42 PM

This is the GOP’s waterloo.

libfreeordie on October 2, 2013 at 5:21 PM

Schadenfreude on October 2, 2013 at 5:56 PM

Ya know for a guy who claims to teach history & is an Obama supporter this is a pretty weird comment – Given that Napoleon was defeated at Waterloo & Obama more akin to the Monarchist than the GOP.
So he’s basically saying that Obama will be defeated and the GOP will win.
okay.

batterup on October 2, 2013 at 6:15 PM

Sure she teaches history, -the History of Transsexualism in 20th Century Caribbean Nations.

…or something like that.

slickwillie2001 on October 2, 2013 at 6:45 PM

The Federal Reserve’s Explicit Goal: Devalue The Dollar 33%

That’s from last year and it applies to ‘paying off’ 20% of the national debt…last year’s debt.

Resist We Much on October 2, 2013 at 6:46 PM

canopfor on October 2, 2013 at 6:21 PM

Unfortunately, knowing there is a problem is only half the battle. Admitting to oneself one is the problem is the harder half.

Unless there is a mass exodus out of Treasury securities, the only two people who have the ability to default on US Treasury securities are Teh SCOAMT and his Treasury Secretary Jack Lew.

Steve Eggleston on October 2, 2013 at 6:25 PM

Steve Eggleston:

Yup,and the (LiV/NiV),will point to the Tea Party,in locky-steppy!:)

canopfor on October 2, 2013 at 6:46 PM

So he’s basically saying that Obama will be defeated and the GOP will win.
okay.

batterup on October 2, 2013 at 6:15 PM


Not to defend the indefensible, I believe he is an American history professor so it’s possible he is more out of his intellectual depth than usual… he probably cannot think in a double entry double negative mode, at all.

ExpressoBold on October 2, 2013 at 6:47 PM

The more the Dow drops tomorrow, the more Boehner and other moderate Republicans will think twice about letting this process play out all the way up to the deadline on October 17th.

… as opposed to the fringe right, dead enders who really don’t care if the market tanks or if the economy suffers. It’s unfortunate that our political system is so susceptible to the antics of a small, self-righteous, and misguided minority that’s indifferent to the traditions of American democracy.

Obviously, the RINOs on Wall Street are adamantly opposed to shutting down the government or even the slightest threat of a default given the painful shock waves it can unleash across the global financial system. The number of Americans committed to dysfunctional government is actually quite low, yet their skill at exploiting the GOP primary system continues to distort the process.

bayam on October 2, 2013 at 6:48 PM

Obviously, the RINOs on Wall Street are adamantly opposed to shutting down the government or even the slightest threat of a default given the painful shock waves it can unleash across the global financial system.

bayam on October 2, 2013 at 6:48 PM

Not a good move, bayam.

Chart of the Day: How Did Senators, Including Barack Obama, Vote Concerning The Debt Limit In 2006?

Resist We Much on October 2, 2013 at 6:54 PM

Treasury: Under Obama, U.S Gov’t Debt Held by Public Up 90%

So, quite obviously, what we need to do is to spend trillions more, especially on a brand-new entitlement programme like Error404Care.

Resist We Much on October 2, 2013 at 6:58 PM

bayam on October 2, 2013 at 6:48 PM

Delusion, projection, and panic.

Is this really Harry Reid posting?

Athos on October 2, 2013 at 6:58 PM

Did this fool just use race in his speech? Saying those that oppose obamacare are nothing but racist?

watertown on October 2, 2013 at 6:59 PM

I hope the market rallies tomorrow.

plaidsheetman on October 2, 2013 at 7:00 PM

Let. It. Burn.

wytshus on October 2, 2013 at 7:03 PM

The number of Americans committed to dysfunctional government is actually quite low, yet their skill at exploiting the GOP primary system continues to distort the process.

bayam on October 2, 2013 at 6:48 PM

.
WTF does that even mean? You are up to your old tricks of talking out of your a$$ while moving your mouth and expecting other commentors to believe you have some kind of “special insight.” That’s absolute BS. You are a shill, a charlatan and an attention whore. End of story.
.
You stink.

ExpressoBold on October 2, 2013 at 7:03 PM

I hope the market rallies tomorrow.

plaidsheetman on October 2, 2013 at 7:00 PM

Despite the spin from some of the lamestream media, I believe most of today’s minor drop was in reaction to ADP’s disappointing release on jobs – reflecting more economic stagnation in the worst recovery since the Second World War.

The biggest concern of the market right now is for the Fed to keep continuing their $85 B / month QE.

The second concern is to see some real reform coming out from Washington that is pro-business / pro-growth – but that would entail spending reductions, tax reforms, entitlement reforms and all of the other stuff that the Administration refuses to negotiate over.

Athos on October 2, 2013 at 7:08 PM

bayam on October 2, 2013 at 6:48 PM

Cinerama. In Technicolour, no less!

A+

Del Dolemonte on October 2, 2013 at 7:14 PM

bayam on October 2, 2013 at 6:48 PM

Not a good move, bayam.

Chart of the Day: How Did Senators, Including Barack Obama, Vote Concerning The Debt Limit In 2006?

Resist We Much on October 2, 2013 at 6:54 PM

Don’t confuse the Unit with Facts! It is not programmed to respond in that area…

Del Dolemonte on October 2, 2013 at 7:15 PM

Don’t confuse the Unit with Facts! It is not programmed to respond in that area…

Del Dolemonte on October 2, 2013 at 7:15 PM

http://www.youtube.com/watch?v=OEu4Iq5KL-Q

Athos on October 2, 2013 at 7:18 PM

F uck you LIBFree …your boy is trying to crash the markets. Eat sh it you fu ck.

CW on October 2, 2013 at 7:23 PM

I loath this guy.

jake49 on October 2, 2013 at 7:25 PM

As long as the Federal Reserve is mainlining $85 billion a month into the stock market via QE, the stock market isn’t going anywhere but up.

Mike Honcho on October 2, 2013 at 7:26 PM

bayam on October 2, 2013 at 6:48 PM

Ah second shift trolls are inc.

Desperation is not a good cologne.

dogsoldier on October 2, 2013 at 7:29 PM

This guy is reprehensible.

And I said guy, which means Barry.

Libfree is just Lamar from Revenge of The Nerds with a public sector job.

budfox on October 2, 2013 at 7:30 PM

Is this really Harry Reid posting?

Athos on October 2, 2013 at 6:58 PM

They have to be paid to spam the talking points. Like the fake protesters today.

dogsoldier on October 2, 2013 at 7:31 PM

So, quite obviously, what we need to do is to spend trillions more, especially on a brand-new entitlement programme like Error404Care.

Resist We Much on October 2, 2013 at 6:58 PM

I like “Cash for Clunkcare”.

Don’t forget BLS is not going to report employment figures Friday.

monalisa on October 2, 2013 at 7:37 PM

TREASON! High Crimes and misdemeanors, theft by the talking, and remember this: MARTHA STEWART WENT TO PRISON FOR INSIDER TRADING!
This is THE insider TAKING the wealth of millions of Americans if it works as he desires. IMPEACHABLE OFFENSE?

ConcealedKerry on October 2, 2013 at 7:46 PM

bayam on October 2, 2013 at 6:48 PM

Ah second shift trolls are inc.

Desperation is not a good cologne.

dogsoldier on October 2, 2013 at 7:29 PM

Not sure… isn’t desperate closing down the government when confronted by a law of the land you don’t like and ruling of the Supreme Court you’d rather ignore? Drama queens on the right are loving it but not so much the rest of the country.

bayam on October 2, 2013 at 7:51 PM

Don’t forget BLS is not going to report employment figures Friday.

monalisa on October 2, 2013 at 7:37 PM

How many think the BLS would not report good news if there were any?

I suspect the September job numbers would continue the same trend as the previous months – right along with the same questions about the aspects that just don’t jive. But then, continuing the trend is par for the course when the books are being cooked.

Clearly ADP’s report today didn’t have much good news in it.

Athos on October 2, 2013 at 7:54 PM

This right here wouldn’t be some serious book cookin? Or clock busted due to seekeester?
http://cnsnews.com/news/article/70-straight-days-treasury-says-debt-stuck-exactly-1669939600000000

ConcealedKerry on October 2, 2013 at 7:59 PM

If Republicans blink, they will be treated far WORSE by Obama, who will gloat publicly. Better to stick to your guns until Obama blinks. The meeting today is a sign Obama is worried.

mountainaires on October 2, 2013 at 7:59 PM

The Lyin kINg should be worried and so should that pederast harry Reid,
Maybe Boehner took a recorder into the beating!

ConcealedKerry on October 2, 2013 at 8:01 PM

isn’t desperate closing down the government when confronted by a law of the land you don’t like and ruling of the Supreme Court you’d rather ignore?

bayam on October 2, 2013 at 7:51 PM

Was it desperate to engage in a civil war when confronted by a law of the land many people didn’t like and the Supreme Court had upheld slavery?

Resist We Much on October 2, 2013 at 8:04 PM

bayam on October 2, 2013 at 7:51 PM

Was it desperate when Democrats shutdown the government over the end of the Fairness Doctrine?

How about when – after 5 previous attempts – made Reagan eat the Boland Amendment in exchange for a budget and not a government shutdown?

Resist We Much on October 2, 2013 at 8:05 PM

‘Fear Monger & Chief’s … Obama will stop at nothing to get what he wants!

easyt65 on October 2, 2013 at 9:00 PM

OK, so now all the Democrats on Wall Street will take this “hint” and crash the market for Obama? Are the Democrat operatives so entrenched in our government that they can just do this sort of thing with the “dog whistle” incentive?

cdtaxlady on October 2, 2013 at 9:59 PM

We can’t forget that the Fed is monetising the debt and pumping $85 billion digitised dollars into the economy every month either.

Resist We Much on October 3, 2013 at 12:36 AM

bayam on October 2, 2013 at 7:51 PM

Only one problem with your assertion. It’s the libturds refusing to negotiate with republicans. They will however negotiate with Al Qaeda, Talibanm Assad, Putin and Iran.

King George once made all the laws of the land. Prohibition wasn’t the law, then it was then it wasn’t.

Your team is responsible for the shutdown Bayam. They wont even pay for little kids cancer treatments. What hypocrites!

Your posts and those of the other trolls today are so shrill and so full of vitriol they scream desperation.

dogsoldier on October 3, 2013 at 5:24 AM

cdtaxlady on October 2, 2013 at 9:59 PM

They look for ways to make money and they won’t stop for Zero, which prompted his appeal.

TheSkyIsFalling 2.0 is not causing the problems he wanted. He wanted real suffering and it didn’t happen.

Frankly I hope the shutdown continues into next year. With each passing day, Zero and Reid’s position gets worse and worse.

dogsoldier on October 3, 2013 at 5:27 AM

He will say or do whatever it takes to destroy the USA. Wake up America and take the appropriate action to rid our country of the domestic terrorists in DC that are determined to make us peasants.

harvey1 on October 3, 2013 at 11:25 AM

F uck you LIBFree …your boy is trying to crash the markets. Eat sh it you fu ck.

CW on October 2, 2013 at 7:23 PM

It’s worse than that:

http://www.forbes.com/sites/charleskadlec/2012/02/06/the-federal-reserves-explicit-goal-devalue-the-dollar-33/

If Obamacare is the law of the land, then why did Obama delay the employer mandate without changing the law of the land?

blink on October 3, 2013 at 2:49 PM

Whenever anyone says ‘it’s the law’ the proper response is ‘bullsh*t’ because of this and other reasons.

Chaz706 on October 7, 2013 at 10:09 PM

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