Last week, the GOP decided to do a temporary measure pushing off a full vote on the debt ceiling. This temporary measure to increase the debt ceiling for a 3 month period while the congress and the President work on a budget is a good idea. The stock market responded by going higher as more uncertainty was removed from the economic landscape. This is wonderful news as we have not had a budget in 4 years. Even better, these measures would withhold payment on congressional paychecks until a budget is reached. Although many in congress don’t like this provision, I think it is about time congress is held accountable. If this can be achieved, more uncertainty will be diminished and the markets will focus on the economy rather than Federal jawboning that has dominated the investment landscape since Obama has taken office.
