The Real Bull Market

Many commentators are talking about a new upleg in share prices. But one look at the chart below and it's not hard to see where the real bull market is.

The one thing that's different about this one, of course, is that those in charge must vote to keep it going. Hence, the following report from Reuters, "Geithner Asks Congress for Higher U.S. Debt Limit":

U.S. Treasury Secretary Timothy Geithner formally requested that Congress raise the $12.1 trillion statutory debt limit on Friday, saying that it could be breached as early as mid-October.

"It is critically important that Congress act before the limit is reached so that citizens and investors here and around the world can remain confident that the United States will always meet its obligations," Geithner said in a letter to Senate Majority Leader Harry Reid that was obtained by Reuters.

A Treasury spokeswoman declined to comment on the letter.

Treasury officials earlier this week said that the debt limit, last raised in February when the $787 billion economic stimulus legislation was passed, would be hit sometime in the October-December quarter. Geithner's letter said the breach could be two weeks into that period, just as the 2010 fiscal year is getting underway.

The latest request comes as the Treasury is ramping up borrowing to unprecedented levels to fund stimulus and financial bailout programs and cope with a deep recession that has devastated tax revenues.

It is expected to issue net new debt of as much as $2 trillion in the 2009 fiscal year ended September 30 and up to $1.6 trillion in the 2010 fiscal year, according to bond dealer forecasts.

The request to increase the debt limit will likely raise the ire of Republicans who have accused President Barack Obama of runaway spending. They may try to hold up the legislation in effort to win concessions on Obama's health care reform plan.

Geithner urged Reid to not let politics hamper U.S. credit-worthiness and said he looked forward to working with the Nevada Democrat to secure enactment of legislation on the debt limit as early as possible.

"Congress has never failed to raise the debt limit when necessary. Because members of both parties have long recognized the need to keep politics away from this issue, these actions have traditionally received bipartisan support," he wrote. "This is clearly a moment in our history that calls for continuation of that tradition."

Comments

[Patrick Bradley]

That's really sad.

[Tim]

This is going to upset the Republicans? Where were they when Bush was doing the same thing? Both parties are fiscal felons.

[edgar]

Bush was a piker when compared with Owebama.

[The Real Deal]

So existing debt of $12tn + new deficit of $2tn = new debt ceiling of $14tn.

This is so, like, unreal. Certainly not enough.

Why be so timid. I'd make it an even $20tn. This way $6tn can be pumped into the economy (through the banks of course, they need to make their pound of meat). Wow, a big fat $6tn bubble. It's party time again!!! I just love economics in America.

[UK Credit Cards]

Its a sad news for all of us.Both parties should think about general people.

[Gibbon1]

This is going to upset the Republicans? Where were they when Bush was doing the same thing? Both parties are fiscal felons.

The Republicans are dammed if they do, dammed if they don't. If they manage to grab back the reigns from the Obama in 2012, their policies will pull the roof down a year or two later. If they don't then Obama is going to close out the tab on their backs.