OK, so Congress has pulled out some kind of compromise with the Debt Ceiling. So far, all we've heard is that $1 Trillion in cuts will come over the next ten years. Now it might be $2.4 Trillion. So, what is it??
Basically here is our opinion based on the lack of solid information: any cut is better than defaulting and sending the economy and financial markets down the shitter. Businesses are actually doing relatively OK, but they are holding off hiring or spending because Washington has no set agenda on what it will be doing in the future. With no clear picture, business will hold back and the economy will remain stagnant. If DC can let Wall Street and Main Street know what the playing field will be, then they can plan. It's like buying a car. If you think you might be fired tomorrow, you ain't gonna hit the dealer lot yet...
Our hope is for cutting the budget deficit in half in Year One, and balanced in three to four years, which often happens on it's own with a gowing economy. When the numbers come, then we'll see. Until then, we'll reserve judgement...
.
1 comment:
IMHO, doing nothing, as we should have done WRT A. bailing out GM and Chrysler, B. TARP and C. the "Bush" stimulus...
This whole f'ing mess is really an entitlement for Wall Street with caveats that still let you shelter that Citation X or Gulfstream G.V or hide your yacht in CT with lower taxes.
Why not make all the entitlements taxable. I've had to pay the IRS when I recieved unemployment compensation and frankly that entitlement to be robbed needs to be shared with the 50%+ that are getting a free ride.
Post a Comment