Boehner's New Plan - Even Deader
A few thoughts on the implications of Boehner adding a "Balanced Budget Amendment" to his debt-ceiling bill (which would now require that Congress pass a BBA before a second debt-ceiling increase could take place early in 2012): Adding the BBA makes the bill very likely to pass the House. …A Recovery Menaced By Dysfunctional Politics
In a time of fundamental uncertainty, what do we know for certain? No, that’s not a Yogi Berra kind of question. Timing of passage of an increase of some size in the national debt ceiling remains uncertain. Which side will blink first remains uncertain. Final form of the legislation …
States Will Be Slammed by Default
A federal default could cascade through state governments, forcing tax increases and budget cuts on local taxpayers. Medicaid budgets could be slashed. Federal money for unemployment benefits could halt. State colleges could lose federal grants. The Pew Center on the States reports that …
How to Protect Your Finances in a Default
Six months ago I thought a federal default unthinkable. Default now seems all too sadly possible. How can individuals protect themselves from the economic consequences of a worst-case scenario? Some thoughts: In a default, cash will be worth less (because the dollar will plunge), and debt …
Stumbling Toward Disaster
There's blame for all in the debt talk breakdown. The president walked away from Simpson-Bowles, declined to present plans to reach long-term budget balance, etc. etc. etc. But in the argy-bargy, keep this in mind: the debt problem has become a debt crisis for one reason only: because …