Breakthrough on Debt Ceiling Imminent

George Brooks |

Brooksie’s Daily Stock Market blog: An edge before the open.

Tuesday, July 19, 2011 BULLETIN 3:34 pm EDT

DJIA: 12,586
S&P 500: 1327

President Obama’s speech this afternoon strongly suggests, an accord will be reached enabling the debt ceiling to be raised averting default, as well as progress toward reducing the nation’s rising national debt going forward.

As I headlined this morning, I expect an accord to be reached BEFORE August 2, possibly this week, or over the weekend.

Obama praised the bipartisan “Gang of Six” senators today for its plan to reduce the deficit by $4 trillion over the next ten years. Of significance is the fact Tom Coburn (R-Oklahoma) has returned to the Gang after leaving due to ideological differences, i.e, he wants (IMHO) to be on board when a decision is announced.

This looks like a breakthrough. Yes, Congress can opt for default, but to its (and everyone else’s) peril.

George Brooks
sensiblesleuth@gmail.com
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The writer of Brooksie’s Daily Stock Market blog, George Brooks, is not registered as an investment advisor. Ideas expressed herein are the opinions of the writer, are for informational purposes, and are not to serve as the sole basis for any investment decision. Readers are expected to assume full responsibility for conducting their own research pursuant to investment decisions in keeping with their tolerance for risk

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