Being that it sometimes snows in September in Montana, and that a cold snap can turn a trout’s stomach, I have a little time this morning to share a little thinking.
As I suggested last week, this week (marketwise) is all about the budget and the debt ceiling. As the week has worn on, I’ve been thinking what little regard the market has for politicians. While the trend has been lower, on low volume—and fireworks could yet erupt—clearly, to this point anyway, our policymakers are an unthreatening lot. But if sentiment should change by next Monday, please, under no circumstances, sweat it. Ted Cruz can ramble, and Obama can not-negotiate, till the cows come home, but make no mistake, freshman Cruz is desperate to make his sophomore term, and the President, well, let’s just say if a government shutdown indeed occurs, the cows will come home in a hurry.
You see, it’s not these flamboyant political events that we have to worry about; we know that this time next year—next month even—the government will be borrowing and paying its bills as if nothing ever happened. It’s the longer-term effects of the government borrowing to pay its bills that we must concern ourselves with. More on those later…
Stay tuned…