On Sunday, Secretary of the Treasury, Timothy Geithner, took to the Sunday morning talk show programs to speak about the gridlock over our national debt ceiling. I am not adept enough to add a video clip of his comments. But, here is what I heard.
Mr. Geithner explained the urgency for Congress doing something before 4 pm Sunday afternoon. At 4 pm Sunday afternoon, U.S Eastern Standard Time, the stock market in Japan would open. According to Mr. Geithner, if Congress hadn’t agreed upon a resolution to address a raising of our debt ceiling by then, Asian markets would open and sell, sell, sell, thus precipitating a catastrophe in the American stock market when it opened this morning at 9 am EST. Pension plans (read here, union pension plans) would lose millions.
I can only suppose that we were all expected (assuming that anyone other than my brother and I watch Sunday morning programing) to call our Congressperson sometime on Sunday to urge him or her to agree to whatever it is that Obama demands.
So, here we are, some 30 hours after Secretary Geithner issued his warning. Our stock markets have closed.
The DOW fell by 88 points to 12,592. That’s sort of a normal day…up by 88, down by 88, but, certainly not the catastrophe predicted by Mr. Geithner. Any investor, including pension funds, would far prefer the “ups”, but…
I’m beginning to wonder if we are being fed a bill of goods.
This is a serious situation, but, it doesn’t get any better if Americans begin to believe that our administration is, well, not exactly telling the truth, the whole truth, and nothing but the truth.