Over the course of the last several months Monday mornings have proven to be quite stressful for financial markets across the globe. With Southern Europe in a seemingly constant state of turmoil we have become accustomed to waking up on a Monday and reacting to potential good or bad news over the weekend.
This morning is different because instead of being focused on Europe we are focused on the new congressional debt committee right here in the United States. This new “super committee” as some call it was born back in early August when the U.S. narrowly avoided causing a panic with how they handled their debt ceiling. The main objective of this committee is to find a way to reduce $1.2 trillion dollars in debt and do it in a way that spreads the reduction half between defense and non-defense spending with a few exceptions. This Wednesday is the deadline for the final vote, but in order to reach that deadline the debt committee is required to make any plan available 48 hours in advance.
All of this debate and political gridlock once again have caused the markets to become spooked. Remarkably this time the markets are not blaming anything on Europe, but the day is still young.
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| From Financial Planners Ft Myers |
Eric Marvin,
JPT112111-1896
