It only takes a couple hundred billion to service the debt obligations of the US. We have plenty of money to cover interest payments on treasuries as well as social security payments and most other entitlements.
The real risk is that the economy would be slowed down by the curtailment of non-essential spending.
There is no doubt that the bickering in Washington is causing the high volatility in the market. I have carefully repositioned all model portfolios in an effort to help us weather this volatility; so far so good.
If an agreement to lift the debt ceiling is not made by Aug. 5th volatility very well could increase. Bear in mind that one man's volatility is another man's opportunity. As the deadline draws nearer I may raise some more cash. I would be a buyer on a dip.
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