1 Like
What does this mean for the economy? Will it be business as usual, or are we expecting the stock market to implode?
If debt ceiling is not signed timely manner, credit rating agencies down grade USA that impact directly stock market.
The whole thing is a total embarrassment. The government isn’t close to balancing the budget. All the idiots quoting Keynesian economics only focus on the half that says use stimulus spending during a recession. They completely ignore building a surplus during the good years. Saving the surplus is supposed to be the source of money to spend in a recession. Instead, we run a deficit when there’s economic growth and run a huge deficit in a recession.
2 Likes
I always wonder if there should be legislation that mandates governments at all levels to have a balanced budget. WA state school districts are required by law to have a balanced budget. Why shouldn’t State and Federal governments be held to same standard 
1 Like
We as voters allow it to happen. We spend so much, since all the politicians need to fund things to keep being elected. People thing the spending in their own area is needed, but the other spending is wasteful. It’s how congress as a whole has a very low approval rating, but people think their rep is doing well.
2 Likes
Insist on spending cuts to go with the increase in the debt ceiling and we may get an impasse which leads to a credit downgrade.
Don’t do spending cuts and the Fed needs to keep raising rates to deal with the resultant inflation.
Either way the market is hosed.
I remember that. I was at AAPL then. We were joking that AAPL had more cash than the US government. That was fun.
1 Like
The stalemate ended in the Sequester. It as the last time deficits were anything close to sane for a few years. The market did well.
1 Like
Sounds like we’ve reached the tipping point where the debt servicing gets out of control.