I’m not a worrier by nature but I have to admit that the debt ceiling issue has me at least a wee bit concerned. So it was not surprising for me to see that President Obama continued to discuss the debt ceiling crisis during this week’s address, focusing on the need for bipartisanship to reach a solution.
“Now, folks in Washington like to blame one another for this problem. But the truth is, neither party is blameless. And both parties have a responsibility to do something about it. Every day, families are figuring out how stretch their paychecks – struggling to cut what they can’t afford so they can pay for what’s really important. It’s time for Washington to do the same thing. But for that to happen, it means that Democrats and Republicans have to work together.” Source: The White House
Although we aren’t yet at the August 2 deadline, the delay in a solution is already having a noticeable effect on the stock market. As I’m writing this article, the Dow is down almost half of a percent but gold is up nearly one percent. Concerns about U.S. debt aren’t just causing problems with the domestic markets, many European and Asian markets closed the trading day with losses.
For now, I will just sit and wait for some good news to come out of Washington so that the nation can avoid a possible economic crisis next Tuesday.