🎭 Political Theater - The Debt Ceiling Drama

Over the past week, there has been nonstop news coverage of the federal government hitting the $31.4 trillion borrowing limit known as the debt ceiling. Once again, Washington drama is on center stage as the Treasury Department enacts "extraordinary measures" to not default on its obligations. Although this has become a regular occurrence, many investors are still understandably nervous. While it's unclear how this will play out politically before the estimated June 5 deadline, the fortunate news is that financial markets have taken these events in stride. How can investors maintain perspective around the fiscal uncertainty despite the political theater?

We discuss in this episode of The Wealth Effect Podcast:
📈 Federal Debt-to-GDP
🏦 Federal Budget Deficits
📊 Owners of U.S. Treasuries

CONTACT

Matt Faubion, CFP®

Founder - Wealth Manager

Show notes and charts:

The federal government has hit the debt ceiling

The government has run budget deficits throughout history

Most Treasuries are held domestically

The bottom line: The political theater over the debt ceiling will likely continue down to the wire, and there will continue to be media coverage of the saga. As with many political issues, investors need to separate their political views and not react with their hard-earned savings and investments.

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