Monday, November 21, 2011

Stocks down over 300 due to debt, supercommittee worries

QUOTE: The specter of U.S. lawmakers failing to reach an agreement on debt-cutting measures to avert $1.2 trillion in automatic spending cuts, coupled with persistent jitters over Europe's debt crisis, sparked a powerful global selloff that knocked American market averages more than 2% to the downside.

QUOTE #2: A congressional Super Committee tasked with crafting a bi-partisan solution to tackle the nation's mounting debt burden appeared stuck at a stalemate with the deadline looming just days away. The 12-member panel was mandated to craft the legislation as part a last-minute agreement over the summer to raise the nation's debt ceiling, staving off what could have been a costly default of American debt.  

First off, I am not particularly in favor of any sort of governmental entity not outlined in the Constitution itself so for me the Supercommittee failure is neither unexpected nor too much regretted.  At the same time, the draconian cuts to the military that are set to kick in at a time of rising tension with Iran and Syria (on top of existing troop operations in Iraq, Afghanistan, Pakistan, Libya, Central Africa and who knows where else) seems like it could lead ultimately to a game-changing collapse of epic proportions. 
Sort of like Rome in its final years...

1 comment:

  1. As a seasoned arm chair expert, I don't think the military spending cuts make us less safe in practice.

    We spend way too much on our defense today. I don't mean we overpay soldiers or give them indulgent gear. The problems are the big ticket strategic items, like B2 bombers, ridiculous R&D projects and crony deals with defense contractors (*cough* Haliburton *cough*).

    Myself excluded, I've got 3 generations on both sides on my family that worked in the defensive industry, and recall ridiculous stories from my grandpa(s). There have been fluff projects burning tax dollars for decades.

    It's not the boots on the ground, but the brass up in the office who need some austerity.

    MY $0.02.