Investors refuse to panic over debt ceiling; Aug 2 not in stone

Investors refuse to panic over debt ceiling
By Peter Schroeder - 07/25/11 10:03 PM ET

Stocks fell only slightly on Monday, the first day of trading since talks to raise the debt limit broke down.

There were no market hysterics, in part because new analysis suggests the government might have more space under the debt limit than previously thought. But investors are beginning to consider what a downgrade to the U.S. could mean for their portfolios now that a big debt deal has slid off the table.

(snip)

Two new reports suggest that the Treasury Department’s Aug. 2 deadline for raising the debt ceiling might not be drop-dead, further easing pressure on investors.

Barclays Capital and UBS both now say the Treasury can make all its payments until Aug. 8 to Aug. 10.

“It appears right now that Aug. 2 is not going to be the magic moment where everything is going to fall apart,” said Merk.

more:

http://thehill.com/blogs/on-the-money/banking-financial-institutions/173443-investors-refuse-to-panic

by the media or politicians, either one.

Why is that?