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What Impression do you think Congress is leaving for us and the rest of the world with the Debt Ceiling Debates

(Last Updated On: August 2, 2011)

What Impression do you think Congress is leaving for us and the rest of the world with the Debt Ceiling Debates that have been unfolding over the last several weeks?

I do think the cost of borrowing will go up in the middle term. In the short term, a downgrade would not hurt as much, given the Japanese precedent.

But i do think that the creditors will be left aghast by what’s been happening. This will translate into higher political risk.http://www.bloomberg.com/news/2011-07-28/roach-says-chinese-officials-appalled-by-impasse-on-raising-debt-ceiling.html

I do think that there is no way the US government can come out of this looking good; default would be devastating and raising the debt ceiling would amount to spending money they dont have.

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We are quickly becoming the laughingstock of the world. I have never been so fed up with Washington as I am now. There are many in Congress who seem to think it is OK if we default. The partisan politics and dysfunction continues to worsen.

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what you said is so incorrect. That is the problem with a lot of people they do not get informed they listen to useless opinion. raising the debt ceiling IS NOT spending the money we don’t have, it’s paying like have a credit card running up the bill and then not paying. The money has ALREADY being spent.

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Well there is a difference between money that has been allocated and spent. Raising the debt ceiling is allowing the government to continue to spend more money than it takes in. It is not like running up a credit card bill since much of the spending could be stopped immediately if needed.

Now I agree working to the deadline is foolish, but not taking the opportunity to at least reduce the rate of digging the hole would be even more foolish.

Note that borrowing rates for the US have not gone up and even if a downgrade comes probably won’t in the near term. We still are the safe bet for many people

 

 

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