This is totally a vent post. Excuse me while I...
You know, sometimes, I can almost, kinda, maybe, on a good day, see where some Republicans are coming from...sometimes. But most of the time, I truly believe that these "standoffs" they have with Democrats are completely selfish and ridiculous.
People are struggggling and you are refusing to pass a bill that would allow them to keep $20/week in their pockets and a roof over their head in the event that they lose a job...even though the bill really only extends this "luxury" until the end of February (which might as well be now, I get it, that's not a real solution, but at least it puts some tick on the clock). Republicans still refuse!
Republicans are trying to make the Dems look bad by saying that the Dems are being the irrational individuals. They're leaving for their holiday vacations anyway, while the Republicans are diligently in Washington "trying to find a fix," "trying to negotiate." Give me a fawking break!
Moreover, the House Republicans want to call the Senate back to talk to them about it too. Now maybe this is my lack of knowledge about the system but...the Senate passed the bill 89-10, they're done, they've done their part, you, House, on the other hand, are the one that isn't finished.
My Senator, Dick Durbin (IL-D), made a point on the news that I would like for us to examine further. He mentioned that he thinks the Republicans are doing this because the U.S. economy is slowly getting better and they do not want it to recover on Obama's watch (Bc let's face it, if Obama can show America that he has improved the economy we've [Dems] all been saying Bush effed up, Obama is going to win a 2nd term. If not, Republicans have a better chance, and a very possible one may I add, to get the Oval office back).
So it's simple economics...take money out of folks' pockets in the form of higher taxes and/or less unemployment benefits, they spend less, consumption goes down, and we all know consumption is only the biggest thing we usually look toward to determine the state of the economy...and there you have it, the economy does not keep getting better.
I would love, LOVE, to believe that Republicans are not that selfish. They could not possibly not give a damn about everyone else so much so, they would take it this far. But that seems to be the name of the game these days. I might be partial...wait, I take that back, I am partial...but I don't think the Dems are this bad.
Oh and Obama ending the War in Iraq and bringing tons of troops home in time for Christmas...genius. Have you heard? His approval ratings are reaching 50%. Republicans...you mad huh?
Showing posts with label politics. Show all posts
Showing posts with label politics. Show all posts
Wednesday, December 21, 2011
Monday, August 1, 2011
Debt Ceiling Vote: This is getting ugly
As most of you have probably heard, there's this huge debt ceiling deal going on right now in Washington. Specifically, back in January we realized that the debt ceiling needed to be raised because by May 2011 the U.S. would pass the legal borrowing limit of $14.294 trillion (we passed it on May 16). A short term solution was to move some money around to pay our bills. But now...we need a long term solution...legislation to increase the debt ceiling. If this doesn't happen it would would be quite horrible for the U.S. economy and also possibly reduce the U.S.'s S&P credit rating. A reduction in the credit rating would mean that the U.S. would incur higher borrowing rates (because they'd seem like a less reliable borrower; it's pretty much the same thing as if your credit score dropped). The bad part for us is that if the U.S. incurs higher borrowing rates, that will mean higher borrowing rates for me and you. Here's where we will most likely be impacted:
1) Credit Card rates will increase - although most credit card rates are tied to the prime rate which probably won't increase, credit card companies may raise the margin rate tied to the prime rate. So instead of your interest being the prime rate + 10% you may be seeing new rates of the prime rate + 11 or 12%. The good thing I guess is that your credit card providers are required by law to let you know about any interest increases 45 days before the change.
2) Slightly higher mortgage rates - for anyone looking for a home right now, you may want to pay close attention to this. Although the rates may not raise more than 0.2%, no one wants a higher mortgage rate. For current homeowners, your rate wouldn't be impacted until it's reset.
3) Student loans may undergo even higher increases than currently planned - student loan rates are already scheduled to increase from 3.4 % to 6.8% for federal loans. This would become even higher if the debt ceiling legislation is not passed. And for private loans that could mean interest rates out of the WAZOO! We know how they will take you for everything you own.
4) Slightly higher car loan rates - of course as soon as car financiers feel the pinch of the increased loan rates they will pass it on to consumers. This increase is thought to only be about 1% though which does not make a huge dent in a car payment. It is still something to keep in mind if you're in the market for a new car.
5) Money market and savings account returns see NOTHING - unfortunately the current returns on your savings and money market accounts will stay the same. Yes, we'll have to pay more interest but they won't have to pay us anything extra. Just the way the cookie crumbles.
6) Investment portfolios - this is going to be something you'll want to watch closely as it will have all sorts of impacts if this legislation doesn't pass. For one, people will start to sell their stocks and bonds, decreasing stock prices. Corporate earnings will fall as interest rates on corporate debt increases and in turn make investment in companies look less attractive - another hit to the stock market. Lastly we'll also be hit by a loss of confidence in investments and any impact to our current economic environment, especially anything portraying it as more uncertain will negatively impact stocks and bonds.
Now why can't Congress get this done:
As always, Congress can't agree on anything! The House refuses to pass a debt ceiling bill that won't cut enough spending. Obama has vowed to veto any bill that only extends the debt ceiling in the short term. The Republicans are threatening to filibuster. There's all of kinds of disfunctionality going on here. And the worst part is...if this doesn't get solved by tomorrow, August 2nd...the U.S. is officially BROKE. And you can prepare for your grandparents, great aunts and uncles to not receive their social security checks until the U.S. gets some money to pay its bills.
Lord have mercy.
Take a look at the actual budget amendment bill here
1) Credit Card rates will increase - although most credit card rates are tied to the prime rate which probably won't increase, credit card companies may raise the margin rate tied to the prime rate. So instead of your interest being the prime rate + 10% you may be seeing new rates of the prime rate + 11 or 12%. The good thing I guess is that your credit card providers are required by law to let you know about any interest increases 45 days before the change.
2) Slightly higher mortgage rates - for anyone looking for a home right now, you may want to pay close attention to this. Although the rates may not raise more than 0.2%, no one wants a higher mortgage rate. For current homeowners, your rate wouldn't be impacted until it's reset.
3) Student loans may undergo even higher increases than currently planned - student loan rates are already scheduled to increase from 3.4 % to 6.8% for federal loans. This would become even higher if the debt ceiling legislation is not passed. And for private loans that could mean interest rates out of the WAZOO! We know how they will take you for everything you own.
4) Slightly higher car loan rates - of course as soon as car financiers feel the pinch of the increased loan rates they will pass it on to consumers. This increase is thought to only be about 1% though which does not make a huge dent in a car payment. It is still something to keep in mind if you're in the market for a new car.
5) Money market and savings account returns see NOTHING - unfortunately the current returns on your savings and money market accounts will stay the same. Yes, we'll have to pay more interest but they won't have to pay us anything extra. Just the way the cookie crumbles.
6) Investment portfolios - this is going to be something you'll want to watch closely as it will have all sorts of impacts if this legislation doesn't pass. For one, people will start to sell their stocks and bonds, decreasing stock prices. Corporate earnings will fall as interest rates on corporate debt increases and in turn make investment in companies look less attractive - another hit to the stock market. Lastly we'll also be hit by a loss of confidence in investments and any impact to our current economic environment, especially anything portraying it as more uncertain will negatively impact stocks and bonds.
Now why can't Congress get this done:
As always, Congress can't agree on anything! The House refuses to pass a debt ceiling bill that won't cut enough spending. Obama has vowed to veto any bill that only extends the debt ceiling in the short term. The Republicans are threatening to filibuster. There's all of kinds of disfunctionality going on here. And the worst part is...if this doesn't get solved by tomorrow, August 2nd...the U.S. is officially BROKE. And you can prepare for your grandparents, great aunts and uncles to not receive their social security checks until the U.S. gets some money to pay its bills.
Lord have mercy.
Take a look at the actual budget amendment bill here
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