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Will Investors Be Punished by Failed Budget Talks?

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U.S. Republicans walked out of budget talks on Thursday, in the latest blow to negotiations to avoid an unthinkable debt default. Could investors be punished?

Republicans have refused to discuss tax increases, and Democrats have found no other way to bridge the financials. President Barack Obama and House Speaker John Boehner have made public attempts to work together, but a lack of consensus persists.

August 2 marks the day that the U.S. will be unable to meet its financial obligations. Concerns have been raised by Republicans in budget negotiations that spending is too high, and potential tax increases are unnecessary.

"It is time for the president to speak clearly and resolve the tax issue," said House Majority Leader Eric Cantor.

At this point, U.S. citizens and the global economic system are at the mercy of broken discussions to solve a solvable problem. Congress has made no significant display of progress, and the masses are quickly becoming frustrated.

Ambiguity is a terrible thing for an economy that is based on confidence, and experience has shown that anxiety breeds terror in financial markets.

Americans have no patience for unnecessary drama as it pertains to our economy. We have simple demands: a stable employment situation, a reasonable attempt to bring down our debt, and a better world for our children.

Until such time that our representatives choose to negotiate with that truly in mind, investors will be punished with uncertainty.

 

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Posted-In: Budget OpinionNews Global Economics

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