Tuesday, May 10, 2011 – My comments are in italics

“It’s true that allowing America to default would be irresponsible,” Boehner told the Economic
Club of New York on Monday evening. “But it would be more irresponsible to raise the debt ceiling
without simultaneously taking dramatic steps to reduce spending and reform the budget process.
Boehner said the Congress should be cutting spending by more than the debt ceiling is being raised.
Boehner said people should be thinking of numbers in the trillions, not billions. Boehner also said that
specific cuts should accompany any debt ceiling deal, potentially delivering fatal blow to the strategy
preferred by the White House and Treasury of a broad set of debt targets but no specifics. – the
Hill/Reuters – this is definitely an escalation of the brinkmanship rhetoric.
Fed’s Lacker warns Congress against playing “chicken” with the debt ceiling – Reuters
Debt ceiling – a small increase possible to allow more time for negotiations? Senate Budget
Committee Chairman Kent Conrad told reporters that a short debt limit increase -- "something to carry
toward the end of the year" -- might be necessary to give even more time to work out a long-term
deficit-reduction plan. Reuters
While the Arab spring promises millions of people a new beginning, the collapse of the old Arab
order threatens to produce wars, the break-up of states and militant Islamists – FT
CME crude margins hiked 25% - CME said on its website that it had hiked margins for crude oil
futures on the New York Mercantile Exchange by $1,250 per contract. CNBC/Reuters
Libya – there are faint signs that the balance of power is starting to shift in the favor of rebel
forces, aided by NATO airstrikes. The rebels scored an important victory in Misrata along w/other parts
of the country. – NYT
Confidence among US small companies fell to a seven-month low in April, damped by a
deteriorating outlook for the economy. – Bloomberg