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Thursday, October 10, 2013

Negotiations on Budget Impasse Help Stocks

Fox News reports that the Dow closed 320 points higher based on optimism "that Washington was nearing a deal to end a budget impasse that has shuttered the government for 10 days and has threatened eventually to cause the U.S. to default on its debt for the first time ever." Ignoring the historical inaccuracy, the issue here is not whether the country would default, but whether it will raise the debt ceiling and continue borrowing. All signs point to a federal government willing to borrow, and a Federal Reserve willing to print money to buy that debt. So kick the can down the road, and eat, drink and be merry.

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