logo
  Join        Login             Stock Quote

On Raising The Debt Ceiling

 April 12, 2011 04:58 PM


There was a rather remarkable poll discussed on the political shows last night on how Americans feel about raising the debt ceiling and, while this is likely another one of those "Yes, I'm in favor of cutting the budget deficit, but not if it affects me" sort of responses that is further clouded by the added mystery and complexity of what not raising the debt ceiling would do to the global financial system, the results were nonetheless intriguing.

In an NBC/Wall Street Journal poll, when initially asked about the U.S. adding to its debt after the limit is reached, only 16 percent favored doing so while 46 percent said it should not be raised. The other 38 percent said they didn't know enough about it to offer a yes or no answer.

[Related -These Small Caps Now Hold Deep Value]

But, when additional information was provided, the responses changed dramatically.

When told that failing to raise the debt ceiling would cause the government to default on its debt, as might be expected, the number saying the ceiling should be raised increased from 16 percent to 32 percent. The surprising part came when respondents saying the debt ceiling should not be raised jumped from 46 percent to 62 percent.

It would seem that Americans view the nation's finances much as they do their own and that the government should tighten its belt sooner rather than later just like them – if that means short-term pain for long-term gain, then, so be it.

Moreover, the whole idea of "defaulting on your debt" doesn't have the same stigma since millions of homeowners started doing it after the housing boom went bust, so, maybe they figure it's not such a big deal.

[Related -Russell 2000 Showing Relative Weakness at the New Highs]

It's hard to disagree with either of these views, however, I'd be curious to know what the response would have been if they were told that not raising the debt ceiling would result in a financial market crash like 2008. Would they then stick to that view?

iOnTheMarket Premium
Advertisement

Advertisement


Comments Closed


rss feed

Latest Stories

article imageRussell 2000 Showing Relative Weakness at the New Highs

A quick “Quad Index” Grid shows us that the small-cap Russell 2000 is showing relative strength to the read on...

article imageThe Poster Boy For Liberal Economics Discovers The Tax Factor

Paul Krugman seems to be having a supply-side-economics moment… sort of. Raising taxes, the NY Times read on...

article imageMacroprudential Policy And Distribution Of Risk

There is very little doubt that housing prices and leverage played a strong role in the global financial read on...

article imageIs the World Turning Japanese?

Many really think so, but reality suggests read on...

Advertisement
Popular Articles

Advertisement
Daily Sector Scan
Partner Center



Fundamental data is provided by Zacks Investment Research, and Commentary, news and Press Releases provided by YellowBrix and Quotemedia.
All information provided "as is" for informational purposes only, not intended for trading purposes or advice. iStockAnalyst.com is not an investment adviser and does not provide, endorse or review any information or data contained herein.
The blog articles are opinions by respective blogger. By using this site you are agreeing to terms and conditions posted on respective bloggers' website.
The postings/comments on the site may or may not be from reliable sources. Neither iStockAnalyst nor any of its independent providers is liable for any informational errors, incompleteness, or delays, or for any actions taken in reliance on information contained herein. You are solely responsible for the investment decisions made by you and the consequences resulting therefrom. By accessing the iStockAnalyst.com site, you agree not to redistribute the information found therein.
The sector scan is based on 15-30 minutes delayed data. The Pattern scan is based on EOD data.