Money Monday!

Debt Ceiling 

Debt ceiling negotiations in Washington will soon be in the headlines with increasing frequency. I’ve included article from Raymond James Senior Investment Strategist Tracey Manzi on this situation. This piece provides interesting background on the debt ceiling, what’s behind the current impasse, and key takeaways on the situation which I’ve pasted below.

Key takeaways:

  • The U.S. government has hit its statutory borrowing limit.
  • The debt limit is not about new spending, but rather a legislative procedure that allows the government to finance past spending that has now come due.
  • Failure to reach agreement on the debt limit has serious, potentially catastrophic consequences for the financial markets.
  • We expect that in the end, lawmakers will strike a deal and raise the debt ceiling; however, they will likely wait until the last possible moment.

For the entire article, click below: