25 July 2011
We hope that you all are finding ways to enjoy the summer months. The state of Minnesota is finally back to work, but we continue to wait on the folks in Washington to address the issues surrounding the debt ceiling. Below, we have provided several links to recent articles, blogs and a short video that we hope you will find informative and timely. For the full article, simply click on the title below.
5 Consequences If America Doesn’t Raise the Debt Ceiling (Yahoo Finance video – David Walker)
David Walker is the former Comptroller General of the United States and head of the Government Accountability Office. Here's what he says will happen if the federal government can't reach a deal (video on weblink above):
- $4 billion-plus a day will come out of the economy.
- Government and civilian military workers will be laid off temporarily. That will result in penalties for late payment, to be paid by taxpayers.
- Social security payments will be delayed.
- No one knows how bad the reaction will be, but Walker is confident it will be negative for the stock and bond markets and the economy.
- Interest rates will rise. For every 1% rise in interest rates, taxpayers will be on the hook for an additional $150 billion in debt payments.
Want Happiness? Don’t Buy More Stuff – Go on Vacation (Gary Belsky & Tom Gilovich)
“…for most of us, money is just a token for what we can do with it — pay the mortgage or rent, send kids to college, buy a TV or travel to Italy. And for nearly all of us, money is finite; there isn’t enough to do all we want, so we must be selective. That raises a crucial question: If we want to maximize the happiness or satisfaction we get from our money, how should we spend it?”