Let’s Talk… The Debt Ceiling!
What you are about to see between now and October 18th is kin to a well scripted movie or play.
The news media loves it because it brings ratings. The backstory is the debt ceiling has to be raised or the government will shut down. To Biden’s credit, he has said he will not do away with the filibuster which forces both parties to work together.
Here are my points about a government shutdown if the debt ceiling isn’t raised.
- A “shutdown” isn’t really a shutdown because they keep essential government employees working. I’ve been through more than one debt ceilings / government shutdowns and I can tell you life goes on regularly for everyone who doesn’t work for the federal government.
- After the theatre and spectacle, the debt ceiling gets raised and things go back to normal.
- The debt ceiling is important, right? Yes and no. I’ve steadily watched the debt go up. I’ve also watched companies like Apple turn into a 2 trillion dollar company. My point is as long as we grow and innovate, the debt can be managed over time.
In the end, don’t buy the hype. If the market sells off, remember you’re in it for the long game so continue to manage your investments according to your risk level.
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The opinions voiced in this material are for general information only and not intended to provide specific advice or recommendations for any individual.
The economic forecasts set forth in this material may not develop as predicted and there can be no guarantee that strategies promoted will be successful.
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