That is what you will read in the headlines. All that was accomplished was another kick the can down the road moment, and the markets are exuberant by a rise in the "debt ceiling"? Growth going forward predicted to be sub 2% as we have added another major gov't intrusion and the cost is enormous.
The Fed continues to POUR $85B a month into the system and most of that ends up in risk assets putting a seemingly permanent back stop to stock prices. There has been little in the normal base building or corrections that take some steam and froth out of the markets allowing them to remain healthy and continue in a long term bull trend......on their own accord.
have we since the Greenspan era just become an economy built on bubbles and bursts of these? Pouring even more FED fuel as mop up, preferred action for them just so we can reflate and blow even greater bubbles.
LOW LOW long term rates have allowed the US Gov't the ability to continue to fund its long term debts as they grow upwards of $17 TRILLION, about $55,000 per American, but about $135,000 if you only count those with jobs!
If it were you or me, at some point the bank would not allow us to continue borrowing. How does the US Gov't pay back this debt? Never will, but they have to do, is be able to pay the interest on that accumulating debt.
So as the masses and the govt cronies back slap themselves for another kick down the road.....that path may lead to eventual tax increases that won't be called that, they will be called "closing of loopholes".
And cutting of Gov't spending? both these actions would take away from the US economy.
An even SLIGHT rise in borrowing costs could be devastating to this country, considering that for as far as anyone can see, we will continue to add to the national deficit. EVERY $ of interest paid is non productive waste.
ObamaCare has come at a most unfortunate time in history, added another HUGE layer of gov't, and has changed the landscape of our freedoms....I don't know if there is any turning back. Also the gulf between the very wealthy and poor has never been wider, all this under the most Liberal Dem president???
Mere mention of FED tapering had sent stock markets into a downward spiral......if that doesn't tell you what is propping up stock prices, I don't know what will.
As they go ever upward ignoring any warnings or corrections, the gulf between value and cost widens to dangerous levels. After almost 5 years of intervention we cannot stand on our own 2 feet? And cannot maintain an even 3% GDP.
When a BEAR MKT finally takes hold, I do not know what the catalyst will be, but I'm pretty sure of how much pain is down that road near where the can was kicked again.