Friday, July 1, 2011
Evening Wrap, 7/1
Bad things are happening, I fear. It looks like the negotiations will go down to the wire and the outcome may not be a good one. That is, with respect to the debt negotiations.
How much deficit reduction is enough? It doesn't look like it will anywhere near enough. The most I've seen is 4 trillion over 10 years. If they got that, it would be a start, but it would still leave a deficit that is much too high.
Another option is to get what you can now and go back for more if you can. This will throw it into the hands of voters who might do anything. But it would be a way out for politicians who don't want to face up to the necessity of doing things that will not be popular.
So, none of the options look good. This is even with a best case scenario, where they get the 4 trillion and other stuff, like a balanced budget amendment and caps on spending. It would seem that even if that was obtained, more will be needed.
If you can get it, then go for that, I'd say. You must obtain this at the minimum. Otherwise, it is pointless.
As for the worst case, the Democrats may decide to say to hell with the debt limits and try the courts. That's assuming the Republicans take them to court. That outcome is also uncertain. It could be a total cluster f&&k no matter how you slice it. You could have this whole thing in court just in time for the elections and the elections could turn out in an unpredictable way, along with the courts.
Bad stuff indeed.