US Debt Ceiling at Eleventh Hour

Could the inconveivable happen? Here are the 3 options that could happen. I personally like the Democrats' plan which is to raise taxes for the rich, leave the medicare untouched and raise the debt ceiling by over 2 trillion so that they won't revisit it till 2013.  The Republicans' ploy is the opposite; they only wish to raise the ceiling by USD900 billion.

The controversial Tea Party seems to have stolen the agenda with the Republicans.

If in doubt, let me tell you;

This is a good guy:




Democrat Senator Harry Reid: Good Guy



EVIL DARTH VADER: REPUBLICAN HOUSE SPEAKER JOHN BOEHNER



The impasse will probably be settled by Monday. Stocks and commodities will rally next week while US Treasuries will come down. The last of the major worries will be over at least till next year. Investors will focus on economic data for the next 6 months. It's funny that earnings report for 2Q is mostly beat expectations but economic data from the US continually look worse.

I am buying stocks and ETFs very heavily plus hedging against tail risk that the debt ceiling impasse does not get resolved. I bought some puts...

BUY WHEN THERE'S FEAR... BUY, BUY, BUY...