Boatman: Washington needs to get its act together
There are many things going on in the world today that could have a major impact on financial markets.
Some will be positive and some will be negative. The government shutdown occurred Tuesday and neither side is budging.
As usual, there is enough blame to go around. Washington does not seem able to do anything other than kick the can down the road. Without a continuing resolution, non-essential services will not have funding to pay employees or pay their bills. There will probably be a 30- or 45-day extension to try and reach a compromise.
If the shutdown is only a few days, the market will not be as affected as with one that lasts several weeks. Some analysts think that could cause a 7 percent drop.
The new employment report is due out on Friday. If that is delayed, there could be even more of a market hit. Times like this demonstrate why your non-market money can never be in the market and your market money must always be in. No one can time the market and most people miss big swings because they do not believe this.
The bigger battle will most likely come in a couple of weeks when the debt ceiling is reached. The government does not have authority to borrow money without an extension being passed.
The government needs to keep borrowing because of all of the deficit spending. To get a scope of the size of the borrowing, visit www.usdebtclock.org.
It is unclear how the government can prioritize its hundreds of thousands of invoices. While the President insists that he will not negotiate, he will have no choice but to negotiate on some issues.
That is the only way there can be any agreement.
Possible changes to quantitative easing by the Federal Reserve have increased volatility in the stock market.
There has been a lot of downward pressure on stock prices and we are witnessing bigger daily swings than there have been for some time. Questions about who will be the next Fed chief are also causing concerns. Obamacare moves into a new stage.
Many companies are not hiring new employees and are reducing hours of part-timers because of the cost. More and more companies are discontinuing retirees' health care and moving them to the exchanges. The latest is Walgreens.
There are some positive things happening in the world.
If Syria follows through on its commitment to destroy its chemical weapons, the world will be a better place.
This will take time and be very complicated with a civil war going on in that country.
The U.S. is having discussions at a high level with Iran for the first time since the hostage crisis during Jimmy Carter's presidency.
This could help bring down oil prices and the cost of gasoline. Oil companies are currently switching to the winter blend, which is also lower cost and Americans drive less in the fall and winter so demand is lower. These lower prices will help the economy since consumers will have more money to spend on other things.
Washington needs to get its act together soon.
Problems cannot be solved by pretending that they do not exist. We are spending too much money and have too many costly policies and unanswered questions for companies to hire new employees.
The best way to get out of economic problems is to have robust growth.
Gary Boatman is a certified financial planner and a local businessman who serves as president of the Monessen Chamber of Commerce.
Show commenting policy
TribLive commenting policy
You are solely responsible for your comments and by using TribLive.com you agree to our Terms of Service.
We moderate comments. Our goal is to provide substantive commentary for a general readership. By screening submissions, we provide a space where readers can share intelligent and informed commentary that enhances the quality of our news and information.
While most comments will be posted if they are on-topic and not abusive, moderating decisions are subjective. We will make them as carefully and consistently as we can. Because of the volume of reader comments, we cannot review individual moderation decisions with readers.
We value thoughtful comments representing a range of views that make their point quickly and politely. We make an effort to protect discussions from repeated comments either by the same reader or different readers.
We follow the same standards for taste as the daily newspaper. A few things we won't tolerate: personal attacks, obscenity, vulgarity, profanity (including expletives and letters followed by dashes), commercial promotion, impersonations, incoherence, proselytizing and SHOUTING. Don't include URLs to Web sites.
We do not edit comments. They are either approved or deleted. We reserve the right to edit a comment that is quoted or excerpted in an article. In this case, we may fix spelling and punctuation.
We welcome strong opinions and criticism of our work, but we don't want comments to become bogged down with discussions of our policies and we will moderate accordingly.
We appreciate it when readers and people quoted in articles or blog posts point out errors of fact or emphasis and will investigate all assertions. But these suggestions should be sent via e-mail. To avoid distracting other readers, we won't publish comments that suggest a correction. Instead, corrections will be made in a blog post or in an article.
- Sutersville denied grant to fix boat ramp
- Scottdale costume shop not just for Halloween, Christmas
- Ringgold senior headed to U.S. Naval Academy
- Rostraver police investigating alleged sexual misconduct between Ringgold HS employee, student
- Scottdale-filmed ‘Gore Orphanage’ wins online contest
- Rostraver man faces trial in child sex case
- Monongahela man injured in house fire
- Charleroi man accused of improper sexual contact with teen
- Grindstone man allegedly tried to meet teen, 13, for sex
- Courageous few challenge winter with Charleroi’s Hoodie Hoo
- Problem with gas line forces evacuations in California Borough