Econometer: Is Congress' debt-ceiling inaction bad for stocks?
Roger Showley, SAN DIEGO UNION-TRIBUNE
Sunday, May 22, 2011
Kelly Cunningham, National University System
Only because the stock market realizes and will calculate that the debt ceiling will eventually be raised despite Congress dithering on spending as long as they can. The prospect for the U.S. government defaulting on debt obligations, disrupting world financial markets, and derailing the weak economy is far too daunting for even Congress to mess up. While honoring debt obligations is critical, continual deficit spending is the more paramount problem. Exploding Medicare, Social Security and other entitlement obligations face daunting challenges with insufficient funding. It is essential that tax policies align spending limitations that do not derail economic prosperity.