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Debt Ceiling

Debt Ceiling

"3d Person and Debt" by renjith krishnan on freedigitalphotos.net

It is Sunday night and I am looking at the United States stock market futures. The outlook is gloomy and I fully expect us to gap down on the open in all indexes. The fact that there wasn’t a deal done to raise the debt ceiling is spooking all investors. If you are to invest in the stock market then you have to be wary of the mass perception. It doesn’t really matter if you believe the non-deal is really a big deal to the United States economy at this point. If enough people panic, the market will go down. If you know for a fact there’s no fire, but people stampede for the exits, then you’re still trampled.

I suspect gaps down will be bought by those who don’t believe that this is a big issue for the United States economy. I can’t say either way because I don’t know the effects. I am willing to bet that the majority of people who are in the stock market don’t understand what a non-deal really means either. Keep a close eye on your television because I know people are going to come on and try to explain things that they don’t fully understand.

My hope is that some sort of deal is made and the debt ceiling is raised. If the debt ceiling isn’t raised, then I guess the government can’t borrow anymore and certain programs are going to have to shut down. There goes that Social Security that people talk about. I am not relying on that program and I hope everyone else in my generation has taken the warnings seriously. Start your own IRA’s if you don’t have a retirement plan at work or even to supplement as a secondary retirement account.

I worry about my father who is nearing retirement age. Maybe Social Security payments will be halted, Medicare and Medicaid policies slashed, and FHA loans stopped. I just talked myself into forming an opinion now. There has to be a deal. No one wants to be part of the Congress that made it so critical government programs were halted, slashed, and stopped. It is human nature to kick the can down the road, as far down the road as possible.

The real deadline is something like August 2nd. There is approximately one more week for action.

Categories: Investing
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