15 Oct 2013
Flash: Senate debt ceiling deal - Societe Generale
FXstreet.com (Barcelona) - In relation to the debt ceiling deal, Sebastien Galy, strategist at Societe Generale, said the
the eternal question is whether it is his left foot or the right one.
Key Quotes:
“The outlines of the senate debt ceiling deal suggest such a kick down the road with the main work left to a committee (tax code..).
“I leave you the judge of which foot they used. Given the success of such committees, it is a delaying tactic suggesting a series of hard fought battles lie ahead for the incumbent administration. For your inner fixed income bull, it means fiscal policy will be quite a drag with the Fed compensating to try and maintain the escape velocity out of the current deflationary trap”.
the eternal question is whether it is his left foot or the right one.
Key Quotes:
“The outlines of the senate debt ceiling deal suggest such a kick down the road with the main work left to a committee (tax code..).
“I leave you the judge of which foot they used. Given the success of such committees, it is a delaying tactic suggesting a series of hard fought battles lie ahead for the incumbent administration. For your inner fixed income bull, it means fiscal policy will be quite a drag with the Fed compensating to try and maintain the escape velocity out of the current deflationary trap”.