Right now the Stock market anxieties will turn to debt ceiling issues.
That is the talk of the town right now, and the next major hurdle for these markets.
Political risk. Democrats and Republicans are fighting again about the nation's finances. What's the risk? If they fail to pass a funding bill before the new fiscal year starts Oct. 1, a government "shutdown" is possible. And if they don't raise the debt ceiling in coming weeks, the nation could run out of money to pay its bills and default on its debts. It might be just rumours again, like we had with the fed tapering stuff.
How Congress and President Barack Obama deal with the debt ceiling is likely to determine market volatility for the rest of the year I think.
Now that the expected tapering of $85 billion a month in asset purchases fizzled out at the Federal Reserve’s September policy meeting, investor attention has shifted to the brewing showdown over the budget and the debt ceiling.
The Congressional Budget Office sees U.S. debt at 100% of GDP by 2038 at current budget rates.
Adding to pressure is a Congressional Budget Office report in the past week showing that national debt is now 73% of GDP and that the federal budget “cannot be sustained indefinitely.” So when you look at the RUSSELL weekly chart below, things do not add up. But then again, when you do some heavy research, and the TRUTH comes out to how the real crisis in 2008 started, you would not believe your eyes.
RUSSEL 2000 WEEKLY CHART!
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| RUSSEL 2000 WEEKLY CHART! |
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