Sunday, January 02, 2011

It's the Debt, Stupid!

With the GOP Congress coming in, expect a lot of Debt Talk. $$

The debt ceiling needs to be raised, but I think the Republicans will use it as a bargaining chip against the Democrats. But make no mistake about it, the debt ceiling will be going up. The government can't help themselves but to spend more money. And as government programs increase, they will require more money. The programs don't shrink or go away. They grow. It's just that simple.

This will also allow the economy and stock market to grow. Sure, it would be nice if corporate spending would step up. But with the cost of labor cheaper overseas and increasing regulations in the US, it seems like much of corporate spending will be done overseas. But that will be good for the bottom line and profits.

But those government dollars will flow

Just my thoughts.

And it will be interesting to see if what happened in the mid-to-late 90's with Clinton and Gingrich will happen again, or rhyme, with Obama and Boehner.

Watching NFL this morning. Er, it's afternoon now. I guess the "big one" will be the night game between under .500 teams to decide the NFC West. Rams?

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