This is an opinion piece. Yesterday it was the Treasury Department who came out with a report that presented to politicians and the world dire results if there was no resolution to the Debt Ceiling issue. Obviously it hit a lot of nerves. Today others are making their announcements including AT&T Chairman and CEO Randall Stephenson. Stephenson is reported to indicated:
“It is unthinkable that the United States could default on its financial commitments, and it would be the height of irresponsibility for any public official to consider such a course. In fact, even the discussion of default poses great risk to our economy and to our country. It is imperative to our Nation that the overwhelming majority of our public officials who recognize this reality unite their efforts, regardless of party, to bring a responsible solution forward.”
Even The Discussion
Of all the comments so far, I think Mr. Stephenson really hit home with his comment: “In fact, even the discussion of default poses great risk to our economy and to our country.”
People in general tend to fail to understand the ramifications of their comments and actions. Yesterday’s drop in the stock market could have been a lot worse. On Wednesday the S&P 500 had closed at 1695 after rising 13.45 points. By 10:00 AM on Thursday is was trading at 1680 down not quite 1%. By noon with selling intensifying it was down to 1670.39 for a loss of 24.61 points from Wednesday’s close. The selling only stalled when Boehner’s comments reached investors.
This drop was a direct result of the Treasury report that pointed out what the obvious, that the US cannot default on its debt obligations and that compromise must be had to govern properly.
The first little rally was followed by more selling which many analysts said made them “hold their breath”. Luckily cooler heads prevailed and investors decided that surely even politicians realize the folly of this fight but confidence can quickly be destroyed by the game of politics.
No matter which side of the Debt Ceiling debate you are on, Republican, Democrat, Tea Party of Independent it must seem obvious that yesterday, investors and possibly the country were lucky that the decline was not severe and despite declining consumer confidence numbers, the belief that cooler heads will now prevail should keep the economic gains made since the financial crisis, intact.
Let’s hope that yesterday’s events taught everyone that as Mr. Stephenson so aptly stated, the mere discussion of these types of events is not healthy for anyone. What is healthy is compromising and understanding there are certain issues that are dire that the game of politics, blame and finger pointing have no place.
I welcome any comments and opinions. Please post yours to this article.
Teddi Knight