MARKET MADNESS....Where do you see the markets heading, now that we have a "Deal"???
I got up early today, just to see if we were still among the living! The living markets, I mean. Do we have a chance at NOT being downgraded and becoming a second rate country in the world of finance? Are we going to survive in this chaos created out of of overspending and a lack of austerity in these most difficult and complicated of times?
I wanted to see what the overseas markets were doing and if they responded well or poorly to our weak attempt to rescue ourselves and our financial reputation at the final hour?
We pulled something off, it appears.....The overseas markets are doing quite well! European markets are humming.....All Asian markets were ahead this morning and our futures appear to be on the upside as well.
Was a default avoided??? Apparently that's what the hope is! A downgrade however seems to be inevitable
Now, this is what it appears is going on:
- We have a 2 party agreement that there will be another "committee" set up to determine just how the spending cuts will be accomplished--whether we will decrease defense spending 50% and how, reform entitlements (social security, medicare, medicade) and how, and where revenue will come from for the next 2 years.
- Debt ceiling has been raised by $2.4 Trillion
- The question remains as to whether the US AAA rating will be lowered or not...looks like it will happen in spite of the "Deal"
So, do we really have a "Deal"....what happens if this whole thing never really comes together??? What happens to markets around the world if we wake up next week and the deal never stuck?
I don't even want to think about it!!! How about you?