Thursday, 27 December 2012

Credit, Ceiling and the Cliff - 3 "C's" for the USA to Tackle

The United States seems to find itself in a continued fiscal mess and now is not the time to play politics.  The ceiling, the cliff and a possible downgrade to their credit rating have investors selling and holding cash.  Companies, hereto, are sitting on a lot of cash, and rightly so.  I am watching the 200 day moving average and hoping that the volatility index stabilizes or further selling is likely to continue into January 2013.  Some investors are heading to gold stocks.... I am not.  Some are actually buying Research in Motion stock...  I am not.

"Thelma and Louise" comes to mind as the cliff  deadline approaches......  The unanswered question is: "Is the cliff the Grand Canyon?"  I don't believe so.....  January will see Bush tax cuts go and a new policy begin; it is the uncertainty that is killing everyone!

Looking at the various polls, more than 54% of US residents agree to increase taxes, cut spending and pay down the debt - so if the majority can agree why can't the political leaders get this done?

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