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The House’s passage of the debt agreement is likely to jolt stocks into a relief rally, but how long can the new mojo drive the market up before relief from the political battle that held stocks back in May gives way to the enormous downdraft coming from hundreds of billions of dollars in new Treasury issuances the government will be making?
Despite all the kerfuffle in the news, there is really only a small chance the deal will not make it through congress and ZERO chance of a debt default unless Biden defies the constitution, but a credit downgrade will happen even without default if congress fumbles the ball.
You’ve heard the warnings many times from every direction. In fact, it is almost all you hear right now: default is a serious threat if the debt-ceiling is not raised: “The White House warned a US debt default will cause stocks to plunge 45% and will crash the US into a deep recession” and “JPMorgan warned that just getting close to the default scenario could create a market panic.”
Today’s news editorial is a potpourri. To start the week on a beautiful note, California is blooming. The hills are awash with color because extreme weather brings blessings along with struggles. There is a beautiful side to its severity, which includes largely replenished CA reservoirs and ground water and hillsides that are blazing with poppies, instead […]