What Investors Need To Know About The Debt Ceiling Debate
by Jeffrey A. Miller
July 07, 2011
A resolution will be achieved because this issue lends itself to compromise. Small concessions can and will be made until a minimal winning coalition is achieved in both houses of Congress.
The result will have some ambiguous language about tax cuts and entitlements, something that both sides can claim as a victory. For an example, read the wisdom of Bob McTeer:
While I agree with those who argue that we need less government spending rather than higher tax rates, their game of chicken over the debt ceiling makes me very nervous. I'm afraid the other side will win by doing nothing, even though win is not the right word. What we need is something I'll call "constructive ambiguity," or language that will enable both sides to save some face.
McTeer is a conservative Republican with strong ideals. He is also a pragmatist with plenty of experience. His opinions deserve more attention.