http://www.nytimes.com/2013/10/08/opinion/nocera-why-the-debt-ceiling-matters.html?_r=0
Read this Article and respond to following prompts using facts and information from the article. If there is an OPINION prompt - please support your opinion with facts from the article or other sources.
WRITE IN COMPLETE SENTENCES
1. Who is "rooting" for the debt ceiling to be crossed?
2. Search the web - Who are the - Tea Party - what is their agenda?
3. According to the article - what is one of America's greatest assets and if it fails - what could happen?
4. How is the constitution - NOT supposed to let this type of financial crisis to occur?
5. What are TWO very important points about THE US GOVERNMENT DEBT?
6. What are TWO possible effects of the default on the American Debt?
7. What is "ironic" about the situation?
8. What are TWO ways the Banking System would be affected by allowing the US to default?
9. If the default does happen - Does the American Treasury Dept. have the authority to choose who gets paid? - Who would get paid and who might possibly not get paid?
10. How will all of this effect consumer confidence (DEFINE THIS- use the web) - what could happen?
1. The Tea Party Republicans are rooting for the debt ceiling to be crossed.
ReplyDelete2. The Tea Party is a political movement known for advocating a reduction in US debt.
3. The backing of America's debt is one of America's greatest assets, and if it fails, the world economy would be in chaos.
4. The constitution is supposed to prohibit the public debt from being questioned.
5. The two very important points about the US government debt is the 14th Amendment and the risk-free asset.
6. The stock market would fall and interest rates would rise.
7. A recession may result from a lack of consumer confidence.
8. The banking system would be in crisis, and Treasuries would be downgraded.
9. If the default does happen, then the American Treasury Dept. would not have the authority to choose who gets paid. Creditors would most likely get paid.
10. Consumer confidence (an economic indicator that measures the amount of optimism a consumer feels about the economy) could fall, making people less willing to spend and businesses less willing to hire.
1. Democrats are rooting for the debt ceiling to be crossed.
ReplyDelete2. The Tea Party is a party that wants to cut down national debt.
3. One of America's greatest assets is the backing of its debt. If it fails, it could send the world economy into chaos.
4. The 14th Amendment states that the validity of the debt of the US shall not be questioned.
5. The first is the 14th Amendment and the second is that US government debt is the only is the only risk-free asset in the world.
6. The country's economic collapse as well as the world's economy collapsing.
7. The recession may worsen because of the fear of recession.
8. Treasuries would downgrade and banks would be in danger of almost, if not completely, collapsing.
9. They do not have the choice of who gets paid, but creditors would most likely be paid.
10. Consumer confidence- an economic indicator that measures the amount of optimism a consumer feels about the economy
Consumer confidence could decrease, causing supply to stay up while demand goes down. Jobs would also become more scarce.
Wyatt
Delete1. Tea Party Republicans are rooting for the ceiling to be crossed.
ReplyDelete2. American decentralized political movement that is primarily known for advocating a reduction in the U.S. national debt and federal budget deficit by reducing U.S. government spending and taxes.
3. The backing of its debt is one of America's greatest assets. If it fails it would send the economy into chaos.
4. It says that the validity of debt shall not be questioned.
5. The 14th Amendment and the risk-free asset are the two.
6. The economy would collapse and interest rates would rise.
7. A recession might come about and worsen.
8. Treasuries would downgrade and banks would be in danger of collapsing.
9. They don't have the choice of who does or doesn't and and creditors would get paid most likely.
10. Definition: an economic indicator that measures the amount of optimism a consumer feels about the economy
People would become cheaper and wouldn't want to spend unnecessary money.
1. The people that are rooting for the debt ceiling to be crossed are the Tea Party Republicans.
ReplyDelete2. The Tea Party are political group that tries to bring awareness to things that can harm or challenge security and other things in the US and they try to serve as a voice for the people of the United States.
3. According to the article one of America’s assets is the backing of America’s debt. If this was to fail the world economy would be in chaos and also the value of American goods could decrease and the value of the dollar would go down.
4. The Constitution is not supposed to allow this type of financial crisis to occur because of the 14th Amendment which would not allow the debt ceiling to be used as a way to negotiate.
5. The two important points of the US government debt is that it goes against the 14th Amendment and that the US government debt would be the only risk free asset in the world.
6. The two possible effects of the default on the American debt is that the stock market would fall and interest rates would rise.
7. The thing that is ironic about the situation is that a default would make a problem for the country’s long term death which basically is the problems Republicans claim to carry about.
8. The two ways that the banking system would be affected if the US were to go into default are if the repo market were to freeze the banking system would lose its way of making money in the short term and rating agencies would downgrade treasuries which would result in money market funds to start dumping government debt.
9. If the default were to happen the American Treasury Department wouldn’t have the authority to choose who gets paid. The people who might get paid include bondholder in China while people like social security recipients would be less likely to get paid.
10. All of this would affect consumer confidence because it would give people less hope about the stability of the economy and things that people own will become less valuable and people could be afraid to trade, buy or sell things.
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ReplyDelete1. Tea party republicans are rooting for the debt ceiling to be crossed.
ReplyDelete2. it is a political group that tries to bring awareness to things that can home security
3. Americas greatest asset while throwing the world economy into chaos, and if it fails it could shut down the federal government.
4.
5. two important facts are is the US government is the only risk-free asset in the world, the US government also undergirds the entire financial system.
6. two possible effects could be that the stock market could crash, and interest rates would rise.
7. what is ironic about this situation is that Treasuries themselves would likely have to pay higher interest to investors.
8. two ways banking systems would be affected by allowing the US to default are that the banking system is that the rating agencies could downgrade the treasuries, and this would cause market money funds and stated dumping the government debt .
9. banking system would be affected if the US were to go into default are if the repo market were to freeze the banking system.
1.)Tea Party Republicans
ReplyDelete2,) The tea party is a group of politicians that want to bring up any issue that could harm the government. The tea party represents the people
3.)the backing of Americas debt is one of Americas greatest assets and if the debt ceiling is not raised then our economy will be chaotic
4.)the 14th ammendmend witch says that that validity of public debt can not be questioned somewhat nullifies the issue.
5.) the U.S. government debt is the only risk-free asset in the world and that debt undergirds the entire world financial system
6.) effect 1 is stock market crash
effect two is mortgages would be more expensive
7)The consumers do not have confidence in themselves therefore a recession will occur
8.)the treaseries would be downgraded and the government will be forced to come up with a difficult decision
9.)the banking system would freeze therefore nobody will get paid
10.) most likely the consumers will loose a lot of confidence in the government because e\of the catastrophe that is occurring.
1. The tea party republicans
ReplyDelete2. The Tea Party movement is an American decentralized political movement that is primarily known for advocating a reduction in the U.S. national debt and federal budget deficit by reducing U.S. government spending and taxes.
3. The backing of its debt is one of America's greatest assets and if it fails it would throw the economy into chaos.
4. the 14th Amendment to the Constitution, which declares that “the validity of the public debt of the United States . . . shall not be questioned.”
5.TWO very important points about THE US GOVERNMENT DEBT are the risk-free asset and 14th amedment.
6. TWO possible effects of the default on the American Debt is that interest rates would rise and stock market would fail.
7. A recession will be the result of this.
8. TWO ways the Banking System would be affected by allowing the US to default is that treasuries would be downgraded and banking would be in crisis.
9. The American Treasury Dept. does not have the authority to choose who gets paid. - Almost nobody gets paid.
10. People would be cheaper and less willling to pay and business wouldn't hire as much. Consumer confidence: measures the optimism of consumers in an attempt to forecast future spending.
1. tea party republicans
ReplyDelete2. they are are ultra conservative republicans who have the agenda of making a smaller government
3. The backing of our debt, the US economy and the world economy could suffer greatly
4. The 14th amendment makes note that congress cannot use it to force policy
5. That the constitution even says that congress cant use it for political gains and that its the only risk free asset in the world.
6. The stock market would fall,treasurers would have to pay higher interests to investors.
7. this could cause more long term debt which is the debt that republicans claim to care about
8. Banks take short term money from treasures, that would not happen, and the banks wouldn't be able to lend. It would causes many hiccups in the banking systems and many things that keep banks going would stop.
9. No it does not have that authority, people in china might get their money, but american bondholders may not.
10. This will affect the consumers faith in the economy and make them not want to consume (buy) things that help the economy. The whole basis of the economy is the consumer, and if they have no faith in the system, the system crashes to a halt.
1. Who is "rooting" for the debt ceiling to be crossed? Those who are "Rooting" for the debt ceiling to be crossed are the Tea Party republicans.
ReplyDelete2. Search the web - Who are the - Tea Party - what is their agenda? The tea party is a group that brings awareness to any issue that could harm the US. Government. They wish to represent the people, and maintain a stable government.
3. According to the article - what is one of America's greatest assets and if it fails - what could happen? America's greatest asset is the backing of its debt and if it fails it could throw the worlds economy into crisis.
4. How is the constitution - NOT supposed to let this type of financial crisis to occur? The fourteenth amendment is supposed to protect the validity of the public debt from question.
5. What are TWO very important points about THE US GOVERNMENT DEBT? Two important points would be the fourteenth amendment which the house is violating, and the governments debt is a risk free asset.
6. What are TWO possible effects of the default on the American Debt? The stock market could fail, and any other asset in the world could crash.
7. What is "ironic" about the situation? Treasuries will have to pay higher interest to investors which creates a sad irony.
8. What are TWO ways the Banking System would be affected by allowing the US to default? The repo market would freeze, and the system would become destabilized.
9. If the default does happen - Does the American Treasury Dept. have the authority to choose who gets paid? - Who would get paid and who might possibly not get paid? Yes, the Treasury would have to pick who gets paid, those it would choose those with essential jobs to pay, and leave out the others.
10. How will all of this effect consumer confidence (DEFINE THIS- use the web) - what could happen? The Consumer confidence is the degree of optimism on the state of the economy that consumers are expressing through activities, and the default could make this rate go extremely low.
1 The tea party republicans.
ReplyDelete2. The tea party is a group that represents the people that is trying to lower national debt.
3. The greatest asset is the ability to pay back our debt, and if that fails, the world economy will crash.
4. The constitution declares that “the validity of the public debt of the United States . . . shall not be questioned"
5. The national debt is the only risk free asset in the world and it undermines the entire financial system.
6. Tons of people wouldn't get paid. Some bondholders in China would get money before the social security people get it. And the stock market would crash.
7. The irony in the situation is a default would "exacerbate the country’s long-term debt" (the thing the Republicans claim to care about).
8. Banks would collapse and the treasuries would be downgraded
9. The treasury would have to make decisions. Bondholders get paid over social security citizens.
10. The economy would crash because people wouldn't trust the market and the market would lose more and more money.
WRITE IN COMPLETE SENTENCES
ReplyDelete1. Who is "rooting" for the debt ceiling to be crossed?
Tea Party Republicans
2. Search the web - Who are the - Tea Party - what is their agenda?
They go and talk about issues regarding the people that could potentially harm them.
3. According to the article - what is one of America's greatest assets and if it fails - what could happen?
The greatest asset is backing this debt america has. If we don't, the economy will be thrown into chaos and we will eventually run out of money.
4. How is the constitution - NOT supposed to let this type of financial crisis to occur?
The 14th amendment states that the validity of public debt can no way what so ever be questioned kind of holds of the issue for now.
5. What are TWO very important points about THE US GOVERNMENT DEBT?
a) the us government debt is the only risk free asset
b) undergirds the entire financial system
6. What are TWO possible effects of the default on the American Debt?
a) crash of the us stock market
b) intrest rates would sky rocket
7. What is "ironic" about the situation?
it would most likely cause a major recession and it would affect the government too, not only the people.
8. What are TWO ways the Banking System would be affected by allowing the US to default?
freezing of the banking system and rating agencies would downgrade treasuries
9. If the default does happen - Does the American Treasury Dept. have the authority to choose who gets paid? - Who would get paid and who might possibly not get paid?
10. How will all of this effect consumer confidence (DEFINE THIS- use the web) - what could happen?
Definition: an economic indicator that measures the amount of optimism a consumer feels about the economy
people wouldnt be confident in the covernment so they wouldnt support the government in any way what so ever.
1. the tea party republicans
ReplyDelete2. group of politicians that want to reduce US funding
3. America's greatest assets is the backing of its debt and if it fails then the economy would be thrown into chaos
4. 14th Amendment declares that the validity of the public debt of the United States shall not be questioned.
5. 14th Amendment and the risk-free asset
6. stock market would fall & interest rates would increase
7. the recession may worsen
8. downgrade the treasuries & banking would be i be in a crisis
9.American Treasury Dept. would not choose who gets paid, but creditors would most likely get paid
10. Consumer confidence- an economic indicator that measures the amount of optimism a consumer feels about the economy
Consumer confidence could decrease,
1. The tea Party want the debt celling to be crossed.
ReplyDelete2. They are the people who deal with any issue that could effect the gov.
3. Our economy could be chaotic and The fed gov could be ruined.
4. the 14th admendement
5. The Gov is the only risk free asset in the world.
6. Stock market Crash.
7. a ressecion with happen because the people dont believe in theirself.
8. The treasureers will decrease.
9. no one will get paid because the banking system would stop.
10. consumers will give up on the gov.
please more effort
Delete1.Tea party republicans are rooting for the dept.
ReplyDelete2.The tea party is a political group that tries to bring an issue.
3.America's greatest asset is the backing of America's debt, causing the economy going into chaos.
4.The 14th amendment is the reason because the public debt cannot be questioned
5.The U.S government debt
6.The two effects is the stock market crash and the interest rates would rise up.
7. What is ironic about the situation is that the consumers will lose their confidence and recession will make things worse.
8. The treasuries would downgrade and the banking system will collapse.
9.The banking system will be affected by the U.S would be stuck and nobody will not able to get paid, therefore the creditors will get paid
10. The consumers will lose confidence because of the decreasing of demand of better banking system.
1) Tea Party Republicans are rooting for the debt ceiling to be crossed.
ReplyDelete2) The Tea Party Republicans are a political group who want to reduce national debt and federal budget deficit by reducing government spending and taxes.
3) America's greatest asset is the backing of its debt. If it fails the world economy would be in chaos.
4) The 14th Amendment declares the validity of public debt shall not be questioned.
5) The US government debt is the only risk free asset in the world. There is always demand for a US government debt.
6) The default may cause the market for Treasuries to destabilize and destabilize every other asset.
7) A default would worsen the debt which is what the Republicans claim to care about.
8) The entire banking system would find itself in crisis. The ratings agencies would probably downgrade Treasuries, forcing money market funds to start dumping government debt.
9) The Treasury Department says it doesn't have the power to choose who gets paid or not. However it is likely that bondholders in China would likely get their money ahead of people like Social Security recipients.
10) Consumer confidence or the optimism a consumer feels towards the economy would probably go down and people will be even tighter with their money.
1. The tea part republicans
ReplyDelete2. Tea means "taxed enough already" They deal with any issue that affects the government
3. The backing of its debts. It could put the world economy into chaos
4. The 14th amendment
5. 14th amendment and our debt is the only risk free asset in the world
6. Stock market would crash and interest rates would rise
7. a default would exacerbate the country’s long-term debt.
8.It will collapse and the treasuries will downgrade
9. If the default does happen - Does the American Treasury Dept. have the authority to choose who gets paid? - Who would get paid and who might possibly not get paid?
Nobody will get paid
10. The consumers will lose their faith and demand a better banking system.
1. Who is "rooting" for the debt ceiling to be crossed? Tea Party Republicans are rooting for the debt ceiling to be crossed.
ReplyDelete2. Search the web - Who are the - Tea Party - what is their agenda? The Tea Party Republican movement is an American decentralized political movement that is primarily known for advocating a reduction in the U.S. national debt and federal budget deficit by reducing U.S. government spending and taxes.
3. According to the article - what is one of America's greatest assets and if it fails - what could happen? One of America’s greatest assets is the backing of it’s debt and the world economy could be thrown into chaos.
4. How is the constitution - NOT supposed to let this type of financial crisis to occur? The 14th Amendment of the constitution declares that “the validity of the public debt of the United States... shall not be questioned.”
5. What are TWO very important points about THE US GOVERNMENT DEBT? The first important point concerns the constitution and the second is that the U.S. government debt is the only risk-free asset in the world.
6. What are TWO possible effects of the default on the American Debt? A default would destabilize the market for Treasuries which would, in turn, likely destabilize every other asset. The stock market could also fall.
7. What is "ironic" about the situation? Treasuries would have to pay higher interest to investors, which creates a sad irony that the default would exacerbate the country’s long-term debt which is the very problem the Republicans claim to care about.
8. What are TWO ways the Banking System would be affected by allowing the US to default? Treasuries make up a great deal of the collateral in the repo market so if the default were to cause the repo market to freeze, the entire banking system would find itself in crisis.
9. If the default does happen - Does the American Treasury Dept. have the authority to choose who gets paid? - Who would get paid and who might possibly not get paid? The American Treasury Dept. does not have the authority to choose who gets paid. Bondholders in China would likely get their money ahead of Social Security recipients.
10. How will all of this effect consumer confidence (DEFINE THIS- use the web) - what could happen? Consumer confidence is an economic indicator which measures the degree of optimism that consumers feel about the overall state of the economy and their personal financial situation. During the 2011 debt-ceiling crisis, consumer confidence dropped by 22 percent. When consumer confidence falls, people are less willing to spend and businesses are less willing to hire.
1. The tea party republicans are rooting for the debt ceiling to be crossed.
ReplyDelete2. The tea party are people who possess a strong belief in the foundational Judeo-Christian values found in things like the Constitution and Declaration. They focus on any issue that threatens national security.
3. One of Americas greatest assets is backing our debt, and if it starts to fail then the economy will crash and go into chaos.
4. The 14th amendment is supposed to prevent this, because it states that public debt cannot be questioned.
5. Two important points is the risk-free government and it goes against the 14th amendment.
6. The economy would crash and the interest rates would go up because of the default on American debt.
7. It would cause a huge recession because the consumers would lose confidence.
8. Treasuries would downgrade, and the entire banking system would collapse if the default happened.
9. Creditors would get paid, but the treasury would not have the authority to chose who gets paid.
10. "Consumer confidence is an economic indicator which measures the degree of optimism that consumers feel about the overall state of the economy and their personal financial situation. How confident people feel about stability of their incomes affect their economic decisions, such as spending activity, and therefore serves as one of the key indicators for the overall shape of the economy." The consumers would lose confidence in the stability of the economy.
1. Who is "rooting" for the debt ceiling to be crossed? tea part rpublicans
ReplyDelete2. Search the web - Who are the - Tea Party - what is their agenda? the republicans
3. According to the article - what is one of America's greatest assets and if it fails - what could happen? a government shutdown
4. How is the constitution - NOT supposed to let this type of financial crisis to occur? its not suppose to happen because its in the constitution
5. What are TWO very important points about THE US GOVERNMENT DEBT? the debt can vary in many ways
6. What are TWO possible effects of the default on the American Debt?
7. What is "ironic" about the situation? it is happenening noow
8. What are TWO ways the Banking System would be affected by allowing the US to default? tax will rise
9. If the default does happen - Does the American Treasury Dept. have the authority to choose who gets paid? - Who would get paid and who might possibly not get paid? the government
10. How will all of this effect consumer confidence (DEFINE THIS- use the web) - what could happen? the consumer will lose confidence because they will not fix the problem.
1. The tea part republicans are rooting for the debt ceiling to be crossed.
ReplyDelete2. The Tea Party Republican movement is an American decentralized political movement that is primarily known for advocating a reduction in the U.S. national debt and federal budget deficit by reducing U.S. government spending and taxes. And the Tea party does not have a single uniform agenda. http://en.wikipedia.org/wiki/Tea_Party_movement#Agenda
3. One of America's greatest assets is the backing of its debt and if it fails then the economy would be thrown into disarray
4. The constitution under the 14th amendment is not supposed to allow this type of financial crisis to occur.
5. The U.S. government debt is the only risk free asset. And the U.S. government debt goes against the 14th amendment.
6. The stock market would fall, and interest rates would rise.
7. A recession would occur and the CONSUMERS would lose confidence.
8. Treasuries make up a great deal of the collateral in the repo market. If a default were to cause the repo market to freeze, the entire banking system would find itself in crisis. The rating agencies would most likely downgrade Treasuries, forcing money market funds to start dumping government debt.
9. The American Treasury Dept. does not have the authority to choose who gets paid. The bondholders in China would likely get their money ahead of Social Security recipients.
10. Consumer confidence is an economic indicator that measures the amount of optimism a consumer feels and the economy could fall, and the consumers WOULD lose their confidence in the stability of the economy.
1. The Tea Party Republicans are rooting for the debt ceiling to be crossed.
ReplyDelete2. The Tea Party is an American decentralized political movement that is primarily known for advocating a reduction in the U.S. national debt and federal budget deficit by reducing U.S. government spending and taxes.
3. According to the article, America's greatest asset is the backing of its debt. If this fails the economy will be a mess.
4. In the Constitution (14th amendment), it says the public debt cannot be questioned.
5. The 14th amendment and the government being the only free asset in the world are two very important points about the US government debt.
6. Two possible effects of the default on the American Debt are interest rates rising at the fall of the stock market crash.
7. This situation is ironic because a default would exacerbate the country’s long-term debt.
8. Treasuries downgrading and banks being in danger of collapsing are two ways in which the Banking System would be affected by allowing the US to default.
9. If the default does happen, the American Treasury Dept. does not have the authority to chose who gets paid. Bondholders in China are more likely to get paid rather than Social Security recipients.
10. Consumer confidence is an “economic indicator which measures the degree of optimism that consumers feel about the overall state of the economy and their personal financial situation.” Consumers will have less faith in the stability of the economy and stop spending.
1. Who is "rooting" for the debt ceiling to be crossed?
ReplyDeleteTea Party Republicans
2. Search the web - Who are the - Tea Party - what is their agenda?
A political movement known for advocating the reduction in the U.S national debt and federal budget deficit by reducing U.S government spending and taxes.
3. According to the article - what is one of America's greatest assets and if it fails - what could happen?
One of our greatest assets is the banking of our debts. The entire world has faith in us paying our debts on time. A default would destabilize the market for Treasuries and in return destabilize other assets. The stock market would fall and interest rates would rise.
4. How is the constitution - NOT supposed to let this type of financial crisis to occur?
The 14th amendment states that the validity of the public debt of the U.S should not be questioned in order to avoid what is happening now.
5. What are TWO very important points about THE US GOVERNMENT DEBT?
The U.S government debt is the only risk-free asset in the world, and the 14th amendment states that the validity of the public debt of the U.S shouldn't be questioned.
6. What are TWO possible effects of the default on the American Debt?
The stock market will fall and interest rates will rise.
7. What is "ironic" about the situation?
Treasuries will have to pay higher interest to investors where a default will exacerbate the country's long term debt.
8. What are TWO ways the Banking System would be affected by allowing the US to default?
Banks will lose access to the repo market and Treasuries will be downgraded forcing money market funds to start dumping government debt.
9. If the default does happen - Does the American Treasury Dept. have the authority to choose who gets paid? - Who would get paid and who might possibly not get paid?
The ATD does not have to authority to choose who gets paid. However, bondholders in China will more than likely get their money first and Social Security recipients will get theirs last.
10. How will all of this effect consumer confidence (DEFINE THIS- use the web) - what could happen?
Consumer confidence is the overall optimism consumers feel about the economy and their personal financial standings. When consumers lose confidence they wont spend and businesses are less willing to hire, which causes recessions and depressions.
1. Who is "rooting" for the debt ceiling to be crossed? Tea Party Republicans are rooting for the debt ceiling to be crossed.
ReplyDelete2. Search the web - Who are the - Tea Party - what is their agenda? The Tea Party are people who want a stable government and make the people aware of government issues that may cause them harm.
3. According to the article - what is one of America's greatest assets and if it fails - what could happen? The article says the asset is backing of debt, and if this fails the economy will plummet.
4. How is the constitution - NOT supposed to let this type of financial crisis to occur? The constitution is supposed to state that the public debt cannot be questioned in the 14th amendment.
5. What are TWO very important points about THE US GOVERNMENT DEBT? Two important points are the 14th amendment to the constitution and the debt is the only risk free asset in our world.
6. What are TWO possible effects of the default on the American Debt? Two effects of the default on American Debt are a stock market crash and interest rates will rise.
7. What is "ironic" about the situation? The ironic thing about the situation is that a recession will affect the government AND the people.
8. What are TWO ways the Banking System would be affected by allowing the US to default? Two ways the banking system will be affected are that the banking system will be in ruins and the treasuries will be downgraded.
9. If the default does happen - Does the American Treasury Dept. have the authority to choose who gets paid? - Who would get paid and who might possibly not get paid? The American Treasury Dept. cannot choose who gets paid. Bondholders in China will likely see their money before social security recipients do.
10. How will all of this effect consumer confidence (DEFINE THIS- use the web) - what could happen? Consumer confidence is an economic indicator that measures the amount of optimism a consumer feels about the economy. The consumer confidence may decrease which leads to a failing economy.
1. Who is "rooting" for the debt ceiling to be crossed? The tea party republicans are rooting for the debt ceiling to be crossed.
ReplyDelete2. Search the web - Who are the - Tea Party - what is their agenda?
The tea party are the grassroots movement that calls awareness to any issue which challenges the security, sovereignty, or domestic tranquility of our beloved nation, the United States of America. They do not have a set agenda.
3. According to the article - what is one of America's greatest assets and if it fails - what could happen? One of America's greatest assets is the backing of debt,and if it fails the stock market would fall and interest rates would go up.
4. How is the constitution - NOT supposed to let this type of financial crisis to occur? The constitution isn't supposed to let this type of financial crisis happen by using the 14th amendment.
5. What are TWO very important points about THE US GOVERNMENT DEBT?
Two very important points are the us government debt is the only risk free asset, and when the stock market falls interest rates go up
6. What are TWO possible effects of the default on the American Debt? Two possible effects are more people losing there jobs and the stock market crashing.
7. What is "ironic" about the situation? For one of the first times ever this wouldn't just affect the people, this would also affect the government.
8. What are TWO ways the Banking System would be affected by allowing the US to default? Two ways would be freezing the repo market and banks could collapse.
9. If the default does happen - Does the American Treasury Dept. have the authority to choose who gets paid? - Who would get paid and who might possibly not get paid? The American Treasury Dept. doesn't have the power, the chinese bondholder would definetly be paid and social security recipients could possibly be not paid.
10. How will all of this effect consumer confidence (DEFINE THIS- use the web) - what could happen? Consumer confidence is is an economic indicator which measures the degree of optimism that consumers feel about the overall state of the economy and their personal financial situation. Consumers would lose confidence.
1. Who is "rooting" for the debt ceiling to be crossed?
ReplyDelete-The republicans are trying to get the US to go in more debt by borrowing more money to pay off other debts to some of the countries who have loaned us money.
2. Search the web - Who are the - Tea Party - what is their agenda?
-The tea party is an organization who is completely based on reducing the nations debt and fixing financial issues. They are debating with the democrats and republicans on whether they are going to raise the ceiling.
3. According to the article - what is one of America's greatest assets and if it fails - what could happen?
-One of our greatest assets is the backing of our debts, without everything will go downhill.
4. How is the constitution - NOT supposed to let this type of financial crisis to occur?
-The 14th Amendment declares the validity of public debt shall not be questioned.
5. What are TWO very important points about THE US GOVERNMENT DEBT?
-The US government debt is the only risk free asset in the world. There is always demand for a US government debt.
6. What are TWO possible effects of the default on the American Debt?
-A default would destabilize the market for Treasuries which would, in turn, likely destabilize every other asset. The stock market could also fall.
7. What is "ironic" about the situation?
- A recession would occur and the consumers would lose confidence.
8. What are TWO ways the Banking System would be affected by allowing the US to default?
-Two ways the banking system will be affected are that the banking system will be in ruins and the treasuries will be downgraded.
9. If the default does happen - Does the American Treasury Dept. have the authority to choose who gets paid? - Who would get paid and who might possibly not get paid?
-The American Treasury Dept. doesn't have the power, the chinese bondholder would definetly be paid and social security recipients could possibly be not paid.
10. How will all of this effect consumer confidence (DEFINE THIS- use the web) - what could happen?
- Consumer confidence (an economic indicator that measures the amount of optimism a consumer feels about the economy) could fall, making people less willing to spend and businesses less willing to hire.
2. Search the web - Who are the - Tea Party - what is their agenda?
ReplyDeleteThe tea party is "the grassroots movement that calls awareness to any issue which challenges the security, sovereignty, or domestic tranquility of our beloved nation, the United States of America." They do not have a agenda."
3. According to the article - what is one of America's greatest assets and if it fails - what could happen? One of its assests is debt. If it fails, the stock market would too.
4. How is the constitution - NOT supposed to let this type of financial crisis to occur? The 14th amendment.
5. What are TWO very important points about THE US GOVERNMENT DEBT?
-The government debt is the only risk free asset
-The stock market and interest rates have an indirect relationship.
6. What are TWO possible effects of the default on the American Debt?
-Lay offs of companys
-another stock crash/depression.
7. What is "ironic" about the situation? That the government is also having to feel the heat from their own mess-up.
8. What are TWO ways the Banking System would be affected by allowing the US to default? Stopping the repo market and the bank to be frozen,
9. If the default does happen - Does the American Treasury Dept. have the authority to choose who gets paid? - Who would get paid and who might possibly not get paid? The American Treasury Dept. has no power over that. And the consumers and workers and bankers could not get paid.
10. How will all of this effect consumer confidence (DEFINE THIS- use the web) - what could happen?
Consumer confidence is " an economic indicator which measures the degree of optimism that consumers feel about the overall state of the economy and their personal financial situation." Consumers could lose all of their confidence in the economy, therefore stop buying, then businesses stop making money, bosses stop paying, workers riot and embargo and a big mess happens.
1. the tea party republicans are rooting for the debt ceiling to be crossed
ReplyDelete2. the tea party is a grassroots movement with the belief that everyone is created equal and deserves an equal opportunity to thrive in the U.S.
3. one of America's greatest assets is: the backing of it's debts. and if it fails: it'll throw the world's economy into chaos
4. the constitution is not supposed to let this crisis occur because of the 14th amendment which says: 'the Validity of the public debt of the U.S. shall not be questioned'
5. points worth making about the US government debt is that it is the only risk-free asset in the world.
6. effects of the default are that it would destabilize the market for treasuries; and the stock market would fall
7. the irony is that a default would exacerbate the country's long term debt (the problem Republicans say they care about)
8. The Banking system would be effected by the repo market freezing and put the whole system in crisis
9.the American Treasury Dept. doesn't have the authority to choose who gets paid
10. Consumer confidence is an economic indicator, based on the confidence consumers have in the economy. This will effect the consumer confidence b/c conusmers won't be very confident in the US economy. which is bad