Wall Street making money on debt-ceiling bickering – Keiser
1 Aug, 2011 19:11
No matter what debt-ceiling decision American lawmakers make on Monday, American credit ratings will be downgraded and this is exactly what bankers on Wall Street crave, financial analyst Max Keiser told RT.
“The US Treasury bond market will be downgraded and will no longer carry the triple-A rating, no matter what they decide and this is exactly what Wall Street banks want,” Keiser said. “You do not make much money trading triple-A-rated US government debt, the spreads are very tight and there is not much money to be made.” According to Max Keiser, the ongoing fuss about the debt-ceiling debate serves the best interests of Wall Street traders. “Most of the economy in America, over 50 per cent of the economy, is tied to investment banking and Wall Street trading, so they control the GDP,” he said. “For them to continue to make money, they need to look for new business, new revenues. Turning America’s triple-A rating to junk will make them many,many billions of dollars in fees. It is just simple economics and simple business, just follow the money.”“I think, Obama is smoking his own belly-button lints and he’s getting high on his own delusions,” Keiser said about the US president’s promises that the country will not face a crisis in the foreseeable future if the initiative goes through. “If he thinks this in going away anytime soon, he is … mistaken.”