Could The National Debt Drive Down Stocks

Could The National Debt Drive Down Stocks
The recent sharp declines in the stock market have analysts wondering if the possible imminent debt-ceiling increase will further fuel investors’ anxieties. Although the recent declines in the market appear not to be related to the impending debt deadline, many believe that an increase in the ceiling, without offsetting spending cuts, will lead investors to panic, causing the market to plunge even further.
The Christian Science Monitor notes that many financial experts believe “it would be more rational if Congress addressed questions of borrowing, along with spending and taxing, as part of a regular budget process.” Congress seems always to find ways to increase taxes, those increasingly heavy saddlebags of fiscal obligation strapped on the backs of middle-class families.  Congress apparently is much more challenged to identify ways to decrease spending, and once again, we are at an impasse and must seriously consider increasing our national debt. Stock market investors hope that Congress will finally focus on offering real spending-cut solutions. Without practical, long-term spending solutions based on compromise, Americans may find their investments descending more than ascending as they ride the waves of this highly volatile market.

No comments yet.

Leave a Reply