@hawkeye10,
As the clock ticks, any agreement in a solution will be too slow, and the return to a stable economy becomes impossible.
The doomsday clock is ticking as we speak, but trying to forecast when that doomsday bomb explodes is a fools game.
All levels of government are making the mistake that "we have time on our hands." If you've been keeping up with the latest on the perception of the GOP on the debt ceiling, they believe August 2 is only a minor date, because the government can continue to pay on the debt with current income.
Most media pundits don't understand the seriousness of our government not meeting its obligations on debt and payments.
Moody just declared Portugal's debt as "junk." Do you know how that is going to harm all of the Euro countries, and the effect on interest rates?
Most people do not understand or appreciate the dynamics of economics, and how the world marketplace has changed their impact on the whole world.
On June 30, I transferred $75k of bonds into equity, because interest rates are going to increase on US treasuries when they default on their loan. This has happened to Greece, and the same will happen to Portugal. That means prices on bonds are going to nose-dive into new territory.
If you know anything about bonds, principal and interest work in opposite directions.
It's a gut-feeling, but my guesses have been pretty accurate in the past.
