I'm stressing about the debt ceiling talks. Is it me, or is the stock market way to calm right now? It sure seems very possible–maybe likely–that the US defaults on its loans.
This is not a political post. I'm only interested in the consequences for stocks. I've personally sold a big chunk of money on some ETFs on the chance that there's a serious pullback.
I just don't see how they square this deal. Both sides are too far apart, and even if the negotiators strike a deal, there's no reason to think that the House will vote for it.
This is insane. Period. It's completely an own goal. When one thinks of the crises of the last half century–the Great Recession, the 9/11 attacks, the Dotcom bust, etc–yes, the govt. had a role to play, but it's always been a slow burn that created the conditions for a crisis. Here's it's just a crisis, all made up and concocted by politicians. There's no deficit or debt crisis at the moment: the US' govt's ability to borrow is rock solid. Literally, our political reps have engineered a crisis!
This is insane. And the stock market is going to be the first victim. The fallout will be on Main Street –and not just in the US.
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