Not sure if it was the Kerry press conference or the sobering headline about the debt shenanigans that caused the market sell off. I wish there was a way to play volatility increasing that actually works because we are going to get more of it as September unfolds.
By DAMIAN PALETTA CONNECT
WASHINGTON—The Treasury Department said it would hit its borrowing limit in mid-October and be unable to pay all of its bills soon after that time, narrowing the window the White House and Congress have to maneuver on budget talks.
The deadline, which is sooner than many on Capitol Hill had expected, gives a sobering jolt to a number of fiscal discussions that have faltered for months.
The White House and many lawmakers, as well as economists and business leaders, have warned of a possible financial crisis if the $16.7 trillion borrowing limit isn’t raised and the government can’t pay all of its bills. Interest rates likely would spike and the bond and stock markets would become extremely volatile if the value of Treasury securities came into question.
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Treasury Secretary Jacob Lew
via U.S. Treasury to Hit Debt Limit in Mid-October – WSJ.com.