Republican John Boehner and Obama were told by Tim Geithner that they need to come up with a plan before Asian markets open sunday evening in order to avoid a strong market reaction. Boehner has also said that Democrats and Republicans need to come up with a detailed legislative proprosal by July 27th in order to give both houses (Senate and Representatives) enough time to organize and vote on the bill by August 2nd.
In other news, investment analysts have said that the IRS took in more revenue than expected over the past month, meaning there may be enough money to extend default another week in case a bill doesn't get passed.
I don't believe they will be able to come to an agreement on paying the treasury bill. I am wondering whether this will cause an increase or decrease in copper and precious metals. The tea party is firm in their beliefs. None of the tea party republicans agreed with the original bank bailouts that lead us to this debt. Although the banks have paid back the money, we didn't pay down the debt the US issued to give it to them. Now that republicans are in control, no more bailouts for these republicans and they are holding firm. Most tea party republicans live far away from washington and new york where the pain will be felt the most of default. They live in midwestern states, whose economies will not be destroyed by financial instruments that will go down in a default. The reaction in the long run will be better, as the economy will start to improve after the initial downfall, and people will have more confidence in US debt if we lower it.
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