We must be an insane lot. We’ve seen this play before, performed by the same actors, and for some reason, we think (perhaps “hope,” is more accurate) that this time, things will turn out differently.
But it shouldn’t take Einstein to tell us that it is unlikely we will see a different outcome during this fiscal crisis. Not only are we up against another debt ceiling, but we are also facing the “fiscal cliff” of automatic tax increases and cuts to domestic/defense spending, which this same administration and Congress concocted when they were unable to come to agreement about raising the debt ceiling last year. As a result of that debacle, Standard & Poor’s lowered the nation’s credit rating to AA+ (the first downgrade in our nation’s history), the stock market tanked, and investors were left holding the bag. This time, both Fitch and Moody’s have already stated that they will lower their credit outlooks for the U.S. if lawmakers do not take meaningful steps to reduce the nation’s debt burden. Meanwhile, the stock market leaps at any hint of success, and falters when the political commentary is less hopeful.
Read more...Insanity: The New Norm | Commercial Property Executive