Links: Greek Ratings, U.S. Debt Limit, Russian Bank Bailout, China's Landing

Debt Subject To Limit, Public Debt Outstanding (
Treasury: No Change to August 2 Estimate Regarding Exhaustion of U.S. Borrowing Authority (Treasury, 7/1/2011)
“The Treasury Department continues to project that the United States will exhaust its borrowing authority under the debt limit on August 2, 2011. Secretary Geithner urges Congress to avoid the catastrophic economic and market consequences of a default crisis by raising the statutory debt limit in a timely manner.”

Doubtful debt deal done soon (AP, 7/3/2011)
"WASHINGTON -- President Barack Obama and Congress likely will find it difficult, if not impossible, to reach a broad deal to raise the U.S. borrowing limit and slash spending by Aug. 2."

Tensions rise on Capitol Hill as America runs out of money (Guardian, 7/3/2011)
"Mark Zandi, chief economist at Moody's Analytics, said: "Our biggest problem now is the fragile nature of the recovery. Confidence is lacking. If anything goes off track, people freeze." He predicts that if the row continues on into July, financial markets – distracted in recent weeks by the shenanigans in Greece – will start to get more and more unsettled. "If we get to August, things will get a lot worse."

Ratings agencies could wreck Greek rescue by declaring it a default (Guardian, 7/3/2011)
"Simon Derrick, chief currency strategist at BNY Mellon, said: "When you compare the French plan to what the ratings agencies have said, it looks as though they would make it a default."

Shilling: China Heading for a Hard Landing (Bloomberg, Part 1, 2, 3, 4, 5)
"The hard landing that I foresee for China will probably prick the global commodity bubble, which is already showing signs of topping out." (from part 5)

Also read: China’s Diesel Smile (, 6/30/2011)

Russia Discovers American-Style "Capitalism", Completes Record Bailout Of Fifth Largest Bank (Zero Hedge, 7/2/2011)
"Russia's fifth largest bank, Bank of Moscow, has been given the biggest bail-out in Russian history." (14 billion)

Extra: Cat bond exposure to U.S. wind reaches all time high - broker (Reuters)
"Outstanding catastrophe bond capacity protecting insurers and reinsurers from U.S. wind risk has reached the highest exposure level since 2003"