For those not following via Twitter, here’s what I posted today:
4pm: The storm before the calm is building in DC. Gotta take the country to the brink so they can be heroes in bringing it back.
4pm: I’d say we’re two plans away from having a plan to pass a bill that sets guidelines for developing a plan before the next deadline #cankick
7pm: Another failed plan in the House. I think we’re one away from real deal now (with little substance but will avert the “crisis”)
Still confident a deal will come right before it has to (and that’s not 10/17 as is being reported), and the US will not default on its debts. As I’ve been saying, the result would be so catastrophic, that no one in Congress will let it go that far and the President / Treasury will use all possible measures to make sure it doesn’t happen. Fitch ratings agency put the US on credit watch negative meaning there’s risk that they would downgrade the US Debt in the future. Immediately after, the orchestrated response was released by Treasury explaining how Fitch’s actions demonstrate the gravity of the situation. Everyone knows this will get resolved, but the fear-mongering will continue in the press for the next few days.
What happens beyond the agreement is a potential issue. Further short-term agreements, followed by a “crisis”, a shutdown, a threat of default, and then a kicking of the can again in another short-term agreement, will cause a broad loss of confidence in the US government and financial system. If we keep managing “crisis” to “crisis”, we will eventually be faced with a CRISIS. We’re not there yet, but it’s not that far off if this continues.
If you’re not following via Twitter, I encourage you to do so as I’ll post short bursts of relevant news or a quick thought here and there. @TomAtPWA.