U.S. default poses low risk to money funds
The money market mutual funds can cope with a short-term default in U.S. treasuries. Fund managers could still continue to buy non- defaulted treasuries. Most fund managers are working to boost the level of assets that can be quickly turned into cash. They are also moving away from treasuries that are most susceptible to a default. In today’s trading treasuries fell and rates surged on maturing bills.
JPMorgan’s Dimon joins Jain in warning U.S. against default
CEO of JPMorgan thinks the U.S. would ripple through the global economy. The economy is gaining strength and a default now can reverse progress. Even as the default comes closer Jain says the dollar’s status as the world’s reserve currency is here to stay. They believe there is no life after the default. The potential consequences are unfathomable that Jain couldn’t offer any meaningful recommendations.
Dollar gains as debt talk optimism
The dollar rose for the first time in six weeks amid lawmakers may end partial government shutdown. The dollar gained as the President nominated Yellen to run the Federal Reserve. The dollar gained .2% and climbed 1.1% after weakening on Oct. 3rd. The last 24 hours have given markets more confidence that the two sides can come up with an acceptable package. The dollar when compared to other currencies is doing quite well considering the showdown.
U.S. stocks extend gains after rally
Gold jumped to a three month low as lawmakers discussed a potential agreement to extend the nations borrowing authority. With the losses in