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Debt Ceiling Fight Now a Threat to Financial System, Hamptons Nightclubs

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In case you missed it, some terrible people in a swamp south of here have spent the last few weeks yelling at each other about the debt ceiling. Don't worry if you haven't been following this - lots of people on Wall Street apparently haven't been, either because it just obviously has to get worked out, or because a U.S. default or downgrade is actually not a big deal.

But the days of ignoring the debt ceiling fight appear to be over, since it's starting to have real-world implications for Wall Street. For starters, it looks like some people are going to lose their deposits on Hamptons chopper charters:

Business executives stepped up appeals this week for political action, worried that the nation faced a crisis, and prepared contingency plans in case the stalemate persists. At Wall Street banks and investment firms, many traders are putting vacation plans on hold so they can be at their desks Aug. 2.

"Trading floors Street-wide are unusually well populated for this time of year," said Peter Kenny, a trader at Knight Capital Group. "You will see very few people on vacation."

Those of you who aren't responsible for trading books aren't off the hook, either: if things are slow for you, and you're good with Excel and/or handy with a hockey stick, your employer might even as we speak be offering up your services to help Washington get this shit sorted.

BlackRock is one of several financial firms that has offered up its economists and analysts to the different political factions in the debt debate to provide modeling and predictions for how different agreements would affect markets.

Debt-ceiling threat has Wall Street scrambling [LA Times]