World Markets Watching Debt Talks

The White House is warning that world markets could react negatively to the game between Democrats and Republics over who will crack first in negotiations over the nation's debt.

What's the Latest Development?

President Obama is no longer directly involved in debt negotiations following the sudden deterioration of talks between his administration and house Republican leader John Boehner. Instead, Congress is looking for a resolution to the American debt crisis which has been tied to the issue of raising the debt ceiling. Still, the White House put pressure on Congressional leaders to find a solution by reminding them of potential market reactions to a seemingly dysfunctional political system. Asian markets opened down this morning with no resolution from the Congress. 

What's the Big Idea?

The current debt crisis is, in one sense, completely artificial. Most nations do not have a debt limit and America's has been consistently raised without much fanfare in the past. But for better or worse, the moment has become a debate over the future of America's spending, long profligate thanks to two foreign wars. The political class is playing with fire, both in terms of market reaction to a financially unstable America and constituent anger over the shameless political wrangling. Still, there is no agreement and in one week the nation's credit will run out. 

Related Articles
Keep reading Show less

Five foods that increase your psychological well-being

These five main food groups are important for your brain's health and likely to boost the production of feel-good chemicals.

Mind & Brain

We all know eating “healthy” food is good for our physical health and can decrease our risk of developing diabetes, cancer, obesity and heart disease. What is not as well known is that eating healthy food is also good for our mental health and can decrease our risk of depression and anxiety.

Keep reading Show less

For the 99%, the lines are getting blurry

Infographics show the classes and anxieties in the supposedly classless U.S. economy.

What is the middle class now, anyway? (JEWEL SAMAD/AFP/Getty Images)
Politics & Current Affairs

For those of us who follow politics, we’re used to commentators referring to the President’s low approval rating as a surprise given the U.S.'s “booming” economy. This seeming disconnect, however, should really prompt us to reconsider the measurements by which we assess the health of an economy. With a robust U.S. stock market and GDP and low unemployment figures, it’s easy to see why some think all is well. But looking at real U.S. wages, which have remained stagnant—and have, thus, in effect gone down given rising costs from inflation—a very different picture emerges. For the 1%, the economy is booming. For the rest of us, it’s hard to even know where we stand. A recent study by Porch (a home-improvement company) of blue-collar vs. white-collar workers shows how traditional categories are becoming less distinct—the study references "new-collar" workers, who require technical certifications but not college degrees. And a set of recent infographics from CreditLoan capturing the thoughts of America’s middle class as defined by the Pew Research Center shows how confused we are.

Keep reading Show less