Monday, July 25, 2011

Global markets wobble as hopes fade for bipartisan debt deal - 25th July 2011

Global markets started to wobble this morning as the government's failure to strike a deal on the debt ceiling this weekend made the prospect of default more likely.

The markets showed unease as Democrats and Republicans started crafting separate debt plans as bipartisan talks hit 'deadlock'.

President Obama and House Speaker John Boehner began working on different plans in a sign that the talks had completely broken down.

Mr Boehner yesterday said that raising the debt ceiling and enacting fiscal reforms should be done in two stages.

But touring the Sunday morning television shows in an attempt to reassure the markets that the U.S. would not default, Treasury Secretary Timothy Geithner said the ceiling must be raised to last 18 months to keep 2012 campaigning from further threatening the U.S credit rating. Read More