In and attempt to decipher the continuous stream of information concerning the debt ceiling, we are posting another commentary concerning the subject, apologies to those who are already fatigued on the subject.
With the NFL talks settling shortly over their time line, we continue to believe there will be at best a last-minute settlement or maybe even a miss on the Geithner Aug 2, imposed deadline.
Be Prepared, A Scouts Motto:
We believe Geithner and the Treasury have a back up plan and various rumors (not worth commenting on) are now circulating on the subject. Putting ourselves in Treasury Secretary Tim’s shoes, we would quietly sit on the sidelines allowing the pressure to build on a budget resolution. In preparation for a possible delay, again looking through Mr. Geithner’s eyes, a back up plan would be a must, and we strongly believe he has something in his pocket but hidden for pressure reasons at this time.
Debt Ceiling Debate Creeping into the Economic Numbers:
Unfortunately this debt ceiling debate has carried on long enough CFO’s across the country are rightly pulling in their wings on spending. Can you blame them? Given the last several years of ups and down.
Several economic numbers, durable goods and this morning’s GDP report being the most significant are reporting slower growth, which we believe is a function of the overhang from the debt ceiling debates.
Interestingly, as our political representatives attempt to compromise for the better of our country, the delays are actually having the exact opposite effect, slowing our economy. We believe this debt ceiling self imposed slow down is short-term and not worthy of extreme fear, but certainly worthy attention, which we will give.
While we approve of the debate and discussion system of the US approving and determining decisions, in Waylon and Willie Mama knock off version we might not desire our “Children Grow Up To Be Politicians” at this time.
Have a Great Day!