As this debt ceiling train barrels toward the chasm ahead, I can’t help think about the terminal addicts I have known in my life. No matter what you did for them, no matter what you told them, no matter how much you reasoned with them, and no matter how reasonable they seemed in their moments of lucidity, they simply continued their destructive behavior.
I apologize, but this movie has gone on just a too long, and even though we think the end is near, it may not be. In less than a week, Congress will either 1) raise the debt ceiling on a clean vote, 2) craft a compromise deficit/debt deal that no one likes, raising the debt ceiling in the process, 3) let the deadline pass to see what happens, and then raise the debt ceiling in haste, as the reality of the mess hits home, or 4) pass a short-term lift in the debt ceiling and we can do this all again in six months.
Interestingly, despite my own frustrations with our political system, the market seems less than worried about the political game of chicken. One could easily attribute the market softness to economic softness. Then again, one cannot discount the underlying reality that despite what the market is or is not doing, a lot of money is not in the market, and it is not there because no one knows for sure what will happen this week.
All of this political brinksmanship is truly sad. We have a market wanting to move, wanting to go higher as corporate earnings continue to show strength and profit, and, as UPS just told us, business continues to believe the second half of this year will be stronger than the first half, if Congress can act like a grownup.
UPS, which posted higher a quarterly profit and affirmed its 2011 view, voiced caution about peak season shipments because of economic uncertainty and the deadlocked negotiations over the U.S. debt.
Okay, okay, writing about this today did little for me and less for you, I am sure. I think I just had to vent my frustration, and so I have. I don’t really feel any better, though, and I still am watching closely, ready to cash out quickly if the train shows no sign of coming to a stop before it reaches the edge of that deep, deep chasm.
P.S.
For those who have written to me about the “disappearance” of the ETF rankings on TraderPlanet, the following link will help.
http://www.traderplanet.com/questions/view/102128-robert_colby_s_top_10_
Trade in the day – Invest in your life …
