Hawaii Six O - Gary Wagner
Time To Kick The Can
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Featuring views and opinions written by market professionals, not staff journalists.
On Friday I began the daily opening letter by saying …
Whether the politicians come to some kind of accord in regards to funding the government or they let time lapse and effectually shut down the government is not the real issue.
I looked at the two real issues that encompass our current dilemma. First is the fact that politicians have become professionals at using this dilemma to insert their priorities into any legislation that is created to avert a government shutdown.
Then we spoke about the real problem; whether or not politicians can come to some sort of long-term agreement about an effectively neutral budget that is fiscally prudent.
As it stands, the politicians were unable to come to some sort of an agreement before midnight on Friday night, and effectively shut the government down over the weekend.
Then they did something amazingly expected when today they averted a shutdown by kicking the can down the road, this time for three weeks. Which was precisely what many analysts including myself anticipated, another stop-gap measure to avoid a shutdown.
In other words, our elected politicians continue to kick the can. This is the only course of action our government officials can agree on. Still, they are unable or unwilling to tackle the real issue: fiscal prudence.
Both Republicans, as well as the Democrats, continue to widen the divide between them as each side attempts to move forward legislation that they favor, as payment for their vote. Each side continues to use their vote to strong arm legislation that would be difficult or impossible to pass without adding it as part of a funding extension bill.
The political powers have been getting better and better at handling a government shutdown. Since 1981 the government has been effectively shut down 13 times, including this weekend’s shutdown.
Once again, the government has avoided a shutdown by kicking the can down the road. This dilemma is like a broken record that keeps on spinning, playing a song that no one wants to hear.
Wishing you as always, good trading,