how to play the Default

B

billpritjr

who is short and what ?

long ?

etc ?

I am thinking about buying some SH and shorting some BAC, with tight stops in place, in case everything is resolved. However I am not optimistic
 
Since the government still takes in enough revenue to pay the interest payments on the national debt. Is there even going to be a real default to begin with?

Failure to raise the debt limit just means those idiots in congress will have to do they're job and balance the budget.
 
Quote from Lucrum:

Since the government still takes in enough revenue to pay the interest payments on the national debt. Is there even going to be a real default to begin with?

Failure to raise the debt limit just means those idiots in congress will have to do they're job and balance the budget.
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that is a good question, but I wouldn't mind making some money off the markets reaction to things in the meantime
 
There s a lot of talk of a large basis point incease in 30 day us t bills due on OCt 24th. I think the yeild curve of the 30 day to 3 month t bill is inverted.
A steepener trade on the default solution as the 30 day yeild collapses might be a way some can play it.
 
Default

:p

Haha....there will zero chance of a default ...they are waiting until the last minute ...

Only a fool would believe in a default....
 
Quote from billpritjr:

who is short and what ?

long ?

etc ?

I am thinking about buying some SH and shorting some BAC, with tight stops in place, in case everything is resolved. However I am not optimistic
More...

The only way to profit big from a huge US stock market crash is to buy deep out-of-the money put options on the S&P 500 (or Nasdaq, Dow, etc...).

A lot of them, if they are not already over-valued...

You can also bracket the US indexes with OCO orders in the future market, in case the default does not materialize and the market goes the other way and soars.
 
as of right now
long volatility, short momo

i've got a hunch after tomorrow the market's gonna start going down hard for the next month... then a bunch of bad news starts coming out like retail sales# down, stores opening early on thanksgiving because economy is so bad, christmas sales gonna be down, blahblahblahblah... then that will be the hook to goose the market up until january. also nyse needs to make sure twitter doesnt go down on the ipo day.
 
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