Obama to banks: We're not defaulting.

Fox Business ^ | 7/26/2011 | Charlie Gasparino

[xtinct]

While officials from the Obama Administration raised their rhetoric over the weekend about the possibility of a debt default if the debt ceiling isn't raised, they privately have been telling top executives at major U.S. banks that such an event won’t happen, FOX Business has learned.

In a series of phone calls, administration officials have told bankers that the administration will not allow a default to happen even if the debt cap isn't raised by the August 2 date Treasury Secretary Tim Geithner says the government will run out of money to pay all its bills, including obligations to bond holders. Geithner made the rounds on the Sunday talk shows saying a default is imminent if the debt ceiling isn't raised, and President Obama issued a similar warning during a Friday press conference after budget negotiations with House Republicans broke down.

[xtinct]

If Obama finds that he's the most hated man in America, it's not because of his race. It's because he's a lying b*tch a@@ punk !

[MichaelP]

He's probably going to raise it by executive order and let opponets fight it out in the courts...

Mike

[Carry_Okie]

Don't worry about a default. I was lying then, and I'm lying now.

[freebird5850]

He reassures the banks but scares the life out of people thinking they won’t get their SS checks. Chicago thuggery, that’s all.

[Scott from the Left Coast]

So, is Boehner listening or is he still worried about the "moral imperative" to take care of the baby-boomers and avoid "default"?

The simple fact is that our society and our government are completely corrupt. Politicians maintain their positions of extreme privilege by doling out money and benefits to voters - it is their ability to bribe that ensures their continued privilege. If you have real cuts or if you have the government unable to continue increased borrowing, then all you do is cripple the politician's ability to bribe the population with relative crumbs. It (default or some forced reduction in government spending) cripples the politicians, not the country. That's why none of them, of any political stripe, will ever cut or reduce anything related government's scope - they are purposely reducing their own power and privilege by doing so.

[existentialist]

Obama never states the obvious that on a daily, monthly and annual basis, we cannot pay all our bills unless we are able to borrow funds from primarily the Chinese. In other words, we need an increase in our credit card limit simply to pay current bills on a monthly basis.

Now, individuals, families and businesses of all sizes would be hard pressed to secure credit within a scenario that has them short on a monthly basis.

Seems like we are headed for a fall.

[NorCoGOP]

administration officials have told bankers that the administration will not allow a default to happen

He WAS bluffing.

ALL IN!

[EGPWS]

Politicians maintain their positions of extreme privilege by doling out [other peoples] money and benefits to voters - it is their ability to bribe that ensures their continued privilege.

Most politicians don't know anything else.

[Hoodat]

So, is he lying to us, the people, when he says we will default? Or is he lying to the bankers when he says we won’t? Which is it?

[Scott from the Left Coast]

I would dare say that none of them know anything else. It is, in totality, what our system has become.

[truthkeeper]

Chicago Politician BTTT

[jacknhoo]

That's what Obama is so upset about...he's promised big money to supporters and he needs every cent he can get to buy his reelection.

America is for sale!

[The_Reader_David]

“. . . primarily from the Chinese” turns out to be false: about 8% of total Federal borrowing is from the Chinese (or about 14% if you ignore the part “borrowed” by the Fed and the Social Security Trust fund).

[frogjerk]

administration officials have told bankers that the administration will not allow a default to happen He WAS bluffing. ALL IN!

OBAMI'S HAND

[Buckeye McFrog]

Now the stage is set for his left flank to launch into him if he is paying the banks but not sending SS checks to Grandma. Pass the popcorn.

[ChocChipCookie]

Can you imagine what his reputation is among bankers and the financial elites?

[JerseyHighlander]

Cash Money.

[sickoflibs]

RE :"He's probably going to raise it by executive order and let opponets fight it out in the courts..."

Republicans can only dream he does this. I dont see it happening, he would own the debt then.

[OB1kNOb]

Obama to banks: We're not defaulting.

Guess I'd better withdraw some more cash from the bank to have on hand, because if Obama is saying this is gonna happen, then it's a good bet the opposite is gonna happen, so that must mean a bank holiday is just around the corner.

[dynachrome]

“Obama to banks: We’re not defaulting.”

=

“Don’t worry, we will continue to bail you out”