Approved borrowing limit Senate Eyes

Approved borrowing limit
Senate Eyes

U.S. Congress House of Representatives, the United States just hours before the deadline to meet, to raise the borrowing limit, the day before the agreement reached between the leaders of the White House and Congress then approved the draft law envisaging the rise of the limit.

Voting in the House of Representatives adopted the law, if the Senate accepts the U.S. President Barack Obama will be presented for signature. Decrease the risk of defaults in the U.S. entry into force of the law, the deadline for increasing the limit will be eliminated on the last day.

Parties agreed on the plan foresees a reduction of $ 2.1 trillion in spending the next 10 years.

Amounting to 14.3 trillion dollars in the U.S. administration in Washington for a long time to increase the borrowing ceiling, and the U.S. defaulted on the trip over the race against time to reach agreement on the final financial markets continued to ease.

Raising the U.S. debt ceiling and the country's political stalemate on how to reduce the budget deficit''AAA''credit rating of the long-term revealed that the risk of losing.

BORROWING LIMIT
The U.S. administration, the salaries of soldiers, including medical expenses and bills to pay credit interest rates on the amount of total debt is facing a legal constraint.

U.S. debt ceiling before the deal was $ 14.3 trillion and the ceiling was achieved in May. Is only with the approval of Congress for authority to increase the debt ceiling more borçlanamıyordu Obama administration.

U.S. debt ceiling, the First World War, to simplify the government's financial needs are met for the first time in 1917, was performed. Since then, the debt ceiling raised dozens of times.

Congress also determines the authority of the government's spending commitments and tax increase.Obama is spending more than you win in this administration, and at the same time makes it impossible borrowing.

Financial crisis and the fragile U.S. economic conditions led to an increase in government spending, tax revenues did not meet expectations. This led to the growth of the budget deficit by increasing the government's borrowing rate.

The Republicans who control the lower chamber of Congress, the House of Representatives, saying they wanted to take control of the budget deficit, borrowing, in the absence of a deal were in the ceiling threatened to artırmayacakları.

Democrats plan to increase the borrowing ceiling of $ 2.7 trillion and 2.2 trillion dollar budget deficit reduction envisaged.

Republicans in the two-stage plan to reduce government spending 915 billion dollars, the government envisages to increase the borrowing authority is only 6 months.

Parties to a final agreement by tomorrow expiry of a period in U.S. history artırılmaması varamayıpta debt ceiling will fall and this is the first time in default in both the U.S. economy would lead to undesirable results in terms of both the global economy.

U.S. credit rating from international credit rating agencies will reduce the value of U.S. Treasury securities will fall in the hands of international organizations and foreign creditors is going to have their money in U.S. banks in the U.S. credit cards, vehicle loans and housing loans to go down in interest rates will rise rapidly.

Oil 6% Plus!

Sensitive to economic growth in recent days, oil prices moving in a fix
entered into. Prices are falling in the last three days, nonstop. This is the month of May, after the longest
decline was pale.

So, Why?
The U.S. debt limit to a few days time will be filled today, while a source of concern
preoccupy investors are now more fundamental problems. Which is 14.3 trillion dollars
As of yesterday, 2.1 trillion dollars the Federal Government's borrowing limit was increased.
Expected reduction of about 2.4 trillion dollars in spending.

If the U.S. continues to worry about with global investors. Economic recovery
Despite an increase in the debt limit of power and note that AAA be broken and the biggest concern
uneasiness. On the other hand, expectations for growth in the stirring heads.

Described in the last 2 weeks Following the announcement of the quarter and 1.3 percent growth figure
(This estimate of 3.5 percent at the beginning of the year 's currency) yesterday described the ISM data were also satisfactory
was not. Considered a pioneer of the ISM data has pointed to growth in 3rd quarter Is a quarter
For the rest of the year in the name of economic growth is at risk, the fact that the market
led participants in the sale. Of course, the European factor in the global markets, creating pressure
Estimates of the downward trend in the growth of these countries in the region. USA Europe
and manufacturing industry to China Index fell in July, the global economic recovery
increased concerns about the slowing.
Here are the concerns of the growing world economy, locomotives, oil prices, hard
is led to a correction.

$ 100 back!
Last week watching the U.S. type of crude oil at $ 100 a barrel price in New York City
Trade Stock Exchange under its current operations in 94 came on the dollar. Support levels
The purchases of crude oil price per barrel is trading at over $ 94. Thus, the
There was a correction of 6 percent by week. But prices are still 16 percent compared to last year
is above.

If a barrel of Brent oil in London today experiencing loss of up to $ 1.25 to $ 115.53
declined.

EXPERTS SAY WHAT?
German Commerzbank analyst "in the U.S. debt ceiling, but the crisis appears to have been resolved
yöneik this time concerns the country's economy has occurred, "was passed.
HSBC economist Frederic Neumann, the messages from all industries in the U.S. and Europe
pointed to a slowdown in industry was passed.
Blue Ocean Brokerage tarderları and analysts last week, described the terrifying growth
data and the revision of the economy that poses the question marks about the future of
pulled.

According to Societe Generale'a oil prices, the rally before the hanging from the bottom of a long-term channel
May test for $ 92.50. Declines to the level of support may continue.

National Australia Bank Ltd., based in Australia.'s Maen and energy expert
indicators and data in the United States weakens oil economist Ben Westmore
you save 98 dollars per barrel of oil for the third quarter will occur at the level of
Larsson.

5 Investment Alternatives For 2011

Nervous about the outlook for equities next year? If you think the S&P 500 is overpriced, here are five places to park your cash in 2011.

Buy a bond fund

With all the recent talk about a bubble in bonds, can fixed-income still be a safe haven if stocks crash? The quick answer is yes, if you pick the right place to invest. One of the best places to be in recent years has been Templeton's Global Bond fund, which is led by Michael Hasenstab. Since he took the helm in 2001, Hasenstab has steered the bond fund to 12% annualized returns, according to Morningstar, far outpacing the benchmarks.
He's done it largely by avoiding convention. Hasenstab doesn't hold U.S. or

Japanese government debt. Instead, he likes the bonds of countries with

low-debt levels and solid growth prospects, such as South Korea and Australia.

Even as the fund has attracted more than $18 billion of new money this year,

Morningstar analyst Miriam Sjoblom thinks it can keep succeeding. "This Analyst

Pick shows no signs of slowing," Sjoblom wrote in her most recent report.

Bet on the bears

Owning a bear fund can be a dangerous pursuit: while your manager shorts stocks and waits for a crash, the market may rise enough to make you quit while you're down. But with Federated's Prudent Bear Fund, at least you know you should earn a solid return while you wait: it's returned an average 4.2% a year over the last decade, including a 27% return in 2008.
Manager Doug Noland calls the fund a core defensive position for any market cycle, and uses short-selling as well as investments in

gold and precious metals to protect against what he sees as a long downward cycle in

U.S. stocks. As of September, Noland had loaded the fund with short positions in

information technology, healthcare, and consumer discretionary stocks.

Select only high quality stocks

Even if you think stocks are headed downward, you probably still want to own some--the ones that should hold up even if the market craters. The influential money manager Jeremy Grantham has been advocating this for a while. His money management firm, GMO in Boston, creates reliable return forecasts and right now assumes that large cap U.S. stocks will return a paltry 1.2% annually over the next seven years.
By contrast, so-called high-quality stocks will return 4.7% over the same period. Grantham

hardly ever recommends individual stocks, but a peak into GMO's Quality stock mutual fund

offers some suggestions (alas, the fund is only for institutional investors). Among the top

holdings as of November: Microsoft, Oracle, Johnson & Johnson, Wal-Mart Stores and

Coca-Cola. Quality stocks indeed.

Embrace volatility

A downturn in stocks almost certainly means volatility -- that seesawing action that makes cable pundits shriek and individual investors worry. Why not try o profit from it? One easy way to play volatility is to buy exchange-traded notes (ETNs) that track the "fear gauge" known as the VIX. They rise in value when investors worry that the stock market will fall.
As Fortune wrote back in June, one popular ETN is the iPath S&P 500 VIX short-term futures ETN. It follows the VIX and rises when options traders buy insurance to protect against a falling market. The ETN is not for everyone: it fell more than 65% this year before

spiking in November. But if you think stocks are ready to fall, this is a way to juice your bet.

Short the frothiest names

A stock crash could spell trouble for high-flyers like Netflix. The DVD-rental company's shares are up 220% in the past year and six-fold since the start of 2009. It's hard to argue against its success: Netflix outsmarted nearly everyone in the recession, adding millions of customers along the way.
But if you're betting on crash, shorting Netflix is a good place to start. As hedge fund manager Whitney Tilson, who is short Netflix, recently wrote on the blog Seeking Alpha, "By any measure, Netflix's valuation is extremely rich." The stock currently trades for about 70 times trailing one-year earnings, and 49 times

analysts' estimates for next year's earnings. The S&P 500, by comparison, trades for

14 times next year's earnings. "In short," Tilson writes,

"the stock is priced for perfection,

and any misstep would likely trigger a huge selloff."
Even without a misstep, any stock priced for perfection in a falling market is bound to fall

even harder.

Source:www.cnn.com