The economic stakes are high concerning both the spending bill and a raising of the US
debt ceiling. But the political stakes are also very high, both in terms of the Obama
presidency vs. the GOP right wing and the clear intent of the US Constitution. Rebuffed
at the end of last week, the GOP right has slipped into demagoguery and rabble rousing to
increase the political pressure and is in near breach of the Constitution regarding the
directive that the proper servicing of US sovereign debt be held sacrosanct.
It is now difficult to envision the House meekly voting out even semi - clean bills on
spending and the debt ceiling. So, I am anticipating more drama in the next couple of
days from the GOP right wing of the House to try and break the president's resolve and
I have to wonder for example whether the stock market is now too sanguine in the near
term relative to the very ugly storm which could still billow up as righties and tea partiers
are faced with having to come away virtually empty if Obama holds his ground.
And, Obama must hold his ground because he is being threatened with extortion.
So, show me the deal that will resolve the serious political dangers the US faces.
- Peter Richardson
- Retired chief investment officer and former NYSE firm partner with 50 plus years experience in field as analyst / economist, portfolio manager / trader, and CIO who has superb track record with multi $billion equities and fixed income portfolios. Advanced degrees, CFA. Having done much professional writing as a young guy, I now have a cryptic style. 40 years down on and around The Street confirms: CAVEAT EMPTOR IN SPADES !!!