http://www.marketwatch.com/story/con...me_latest_news
"No U.S. debt deal; investors eye Asian markets
Chance of technical default 20%, investor says
NEW YORK (MarketWatch) — Investors awaited signs of action from Congress Sunday as the opening of markets in Asia approached and no deal to increase the U.S. debt limit was apparent.
A 4 p.m. Eastern deadline set Saturday by House Speaker John Boehner (R., Ohio) for a report on progress on a compromise plan to raise the nation’s $14.2 trillion debt limit to avert a potential Aug. 2 default passed with no word.
Boehner had scheduled a 4:30 p.m. conference call with his Republican colleagues.
Boehner said Saturday he wanted the framework of a plan to assure Asian markets before the trading began. Markets in Tokyo and Sydney were scheduled to open at 8 p.m. Eastern.
Earlier Sunday, lawmakers and Obama administration officials expressed confidence there would be a plan by late in the day U.S. time.
White House Chief of Staff William Daley said on CBS’ “Face the Nation” that the lack of an agreement could be “stressful” for global investors.
“We may have a few stressful days coming up, and stressful for the markets of the world and the American people,” he said.
The chance of a technical default by the U.S. is still seen at around 20%, said Jack Albin, chief investment officer at Harris Private Bank.
“The problem from an investment standpoint is hedging is difficult,” he said. “Our conclusion is to buy any significant dip, should one occur.”
Coming up with a plan very soon to make sure the U.S. meets its debt obligations is “the only option available,” Treasury Secretary Timothy Geithner said Sunday. “They’re going to increase the debt ceiling, and we will not default.”
However, Boehner also said if a bipartisan deal to raise the debt ceiling isn‘t possible, Republicans will go it alone, according to media reports.
Default would be ‘devastating’
The White House has warned that the U.S. could default on Aug. 2 if the $14.2 trillion debt limit isn’t raised by Congress.
“To default would be a tax on all Americans and it would be devastating to the country,” Geithner said on ABC’s “This Week.”
The economy would have trouble recovering from that, he said..."
Originally Posted by Nam T
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