4.4 • 3K Ratings
🗓️ 4 October 2013
⏱️ 39 minutes
🧾️ Download transcript
The government shuts down. Twitter gets ready to go public. And some Microsoft shareholders call for Bill Gates to step down. Our analysts discuss those stories and Honest Tea co-founder Seth Goldman talks about the business of tea.
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0:00.0 | Everybody needs money. That's why they call it money. |
0:08.0 | From full global headquarters, this is Motley Full Money. |
0:19.0 | Welcome to Motley Full Money. Thanks for being here. |
0:21.0 | I'm your host, Chris Hill, joining me in studio this week for Motley Full One, Jason Moser, |
0:24.0 | and for Million Dollar Portfolio, Charlie Travers, and Ron Gross. |
0:27.0 | Good to see you guys. We've got some hot IPOs and some tech companies under fire. |
0:32.0 | We will dip into the full mail bag, and as always, we'll share a few stock ideas to put on your watch list. |
0:37.0 | But we begin this week with the big macro, and that means the government shutdown. |
0:42.0 | The government has been shutdown. Who knows, Charlie? By the time this makes air, |
0:46.0 | maybe they'll have their act together and the government will be back up. |
0:49.0 | The market didn't really react in a negative way, but what is looming out there for investors |
0:55.0 | is the October 17 deadline to raise the debt ceiling. |
1:00.0 | Where do you think we are right now? Yeah, Chris. That's really a much bigger deal than the government shutdown, |
1:05.0 | not to make light of anyone who is actually caught up in that situation, which is not great if you're relying on that. |
1:12.0 | So what is going on here is by law, the government can only spend money if there are sufficient funds. |
1:18.0 | Where do they get the money? They get it from tax receipts and by borrowing. |
1:23.0 | And the amount of money that the Treasury can borrow to pay the bills is set by Congress, |
1:28.0 | typically raising that debt limit is only a formality. |
1:32.0 | It's occurred 60-something times in the past few decades. It's typically not a big deal. |
1:37.0 | And really, this is important because every year on Congress sets the budget, |
1:41.0 | they are agreeing to pay these obligations except the last two times around they did not agree to actually |
1:47.0 | that the Treasury raised the money to do it. |
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