Anyone getting jittery?

[doodle]

The latest from the debt talks don't look too reassuring. Anyone getting jittery? I know I am.

WASHINGTON (AP) — President Barack Obama has ended a nearly two hour debt-limit negotiation brusquely, declaring: "Enough is enough" as he rejected Republican demands that he accept a short-term extension of the government's borrowing authority.

Democratic officials and Republican aides familiar with the negotiations say the meeting ended after White House officials had identified more than $1.5 trillion in spending cuts over 10 years to reduce the deficit. Pressed by House Republican leader Eric Cantor to accept only months-long debt ceiling increase, Democratic officials say Obama announced: "Enough is enough. We have to be willing to compromise. It shouldn't be about positioning, and politics and I'll see you all tomorrow."

The officials spoke on condition of anonymity to describe the closed-door meeting.

[Gumby]

I find the whole thing fascinating and sickening at the same time. Two parties battling out their core ideologies in the cabinet room day after day — with their sacred cows on the table — while the clock ticks down to the wire. Who will give up what's most important to them? What will happen if they can't reach a deal? POTUS storming out the room. The AAA credit rating — untarnished since 1917 — hangs in the balance. The American people, and the US dollar, teetering on the edge of a cliff designed by their own elected representatives. How will it end? It's like a really bad movie, but I can't stop watching.

[Gumby]

And despite all of this drama, you will notice that the bond market is far more level-headed than any of us...

You Just Can't Keep A Good US Treasury Down

That's the difference between the bond market and the stock market. The stock market always overreacts. The bond market sees the big picture and adjusts accordingly.

Treasuries are extraordinarily resilient. There's nothing else like them.

But, if for some reason Treasuries do crash, it will likely be a great rebalancing/buying opportunity.

[Jan Van]

My guess is the bond markets are right, it will probably end up being a big to do over nothing. People shouting that the end of the world is near, but really only pushing their own partisan views.

I did like these articles:
The U.S. Treasury will not default - Kurt Brouwer
What If the U.S. Treasury Defaults? Interview with Stanley Druckenmiller

And maybe like Gumby mentions, some nice buying opportunities...

[doodle]

I just finished watching Bernanke congressional hearing and the two sides were fighting a proxy war through the poor man.

I am very curious to see how the two sides resolve this issue. Right now I think you might have a better chance of brokering a peace deal between the Palestinians and Israelis than between these two parties.

[AdamA]

And despite all of this drama, you will notice that the bond market is far more level-headed than any of us...

Well put.

[MediumTex]

I'm not jittery.

[Gumby]

And there may be a silver lining for what happens if and when the US loses its AAA rating:

Now Here's The Good News About The US Losing Its AAA Rating