On July 29th of this year, I sent a letter to Representative Boehner warning him about the implications of failing to reach a debt deal by the August 2nd deadline.
As we all know, a debt deal was eventually passed a few days later...
Even so, financial markets across the world were rattled by the prospect of a US default and the irresponsibility of Congress. The graph above [taken from marketwatch.com], shows the Dow Jones Industrial Average over the past 5 years and I've taken the liberty of highlighting the sharp drop that occurred in the stock market in the few days after I sent my letter as the US saw a downgrade in its credit rating.
Although the situation would probably have been worse if no debt deal had been reached, the debt deal simply kicked important decisions down to a supercommittee...
As the deadline for the supercommittee to devise a plan is rapidly approaching, I'd like to remind everyone of what occurred the last time that Congress failed to make an important decision...
We are still not safe from another recession, so now is the time for Congress to act confidently and swiftly to reassure the American people.
The solution is simple: be reasonable and make decisions that are not politically motivated
If you want to know exactly how we got into this mess and how it could have been avoided, please go ahead and read the letter I sent a few months ago...
