While many investors are nervously watching the approach of the August 2 debt ceiling deadline, at least once expert, chief investment strategist at D.A. Davidson Fred Dickson, says that if anything, investors of all types should view the outside chance that the government will not raise the debt ceiling as a “buying opportunity”[1]. Dickson believes that there is only about a one-in-a-100 chance that the government will fail to raise the debt ceiling before the deadline, but even if that happens, he is skeptical of predictions of stock market crashes and soaring interest rates. “At worst, [the crisis] would lead to some short disruptions and perhaps a 2-3 percent drop in the stock market,” he said, comparing the issue to other crises like the European debt crisis and the Japanese earthquake and tsunami.
Not surprisingly, not everyone agrees with Dickson. In fact, other analysts say that the nervousness related to the upcoming deadline alone is hurting the housing market because it is leading to fears about economic uncertainty. They claim that people are afraid to buy until this issue is resolved[2]. Taken from Dickson’s perspective, however, this is exactly what will make the next few weeks such a buying opportunity. Do you think that the debt ceiling will be raised? Do you even want it to be raised?
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[1] http://www.bankinvestmentconsultant.com/news/davidson-dickson-investment-debt-ceiling-2674267-1.html?
[2] http://www.npr.org/2011/07/21/138543667/debt-drama-could-be-another-blow-to-housing
Absolutely not to raising the debt ceiling, IMHO. But, as has repeatedly been the case in the past, you can expect the GOP leadership to cave and agree to some deranged “compromise” that raises the debt ceiling. On this topic, “compromise” equates to surrender, and that surrender will just dig the hole deeper. Each “compromise” plan that is described sounds worse than the previous. Tax increases are coming, combined with further unrestrained spending, and ever expanding government and regulatory burdens. The elites of both parties need to be run out of town on a rail, though prosecution would be preferable.
Do you give an alcoholic more alcohol? How about a government that is spending money like a drunk sailor?
Since it is fairly obvious that few in Washington want to reduce spending and put a plan in place that really deals with our debt, the only alternative seems to be to not raise the debt ceiling and force the government to live within its means and in the real world.
Republicans want to destroy our great America while they can. They care only for the wealthy and not for the working class people of this country.
@ Tom Brown- don’t besmerch sailors, like me, I have never seen a salior keep drinking on money he/she didn’t have.
@ JTaylor- Sorry your myoptic view doesn’t let you see the whole picture. The entire group, republican and democrat, have put us in a used Lamborgini they paid way to much for, on credit, with bad brakes. they are driving us down the highway to hell as fast as they can go!