If the GOP and Democrats don't agree on a budget would there really be a financial meltdown? If so, should I bail out of investments? Any opinion would be most helpful.

Thanks.

I seriously doubt if there will be a financial meltdown as you mention, there may be a modest downgrade in the Ratings which may trigger an increase in the T-Bills rate, triggering an increase in credit card interest rates, and variable interest rate products may see an uptick!

This would at worst result in the stock market showing losses of around 200-250 points particularly hard hit would be in the financial sensitive sector such as Banks and Insurance Sectors. Also, there may be losses in Corporations that have substantial debt due to potential interest rates going up. But, in my opinion there will be "NO FINANCIAL MELTDOWN"!

The Market is already selling off today in a big way! The impact of an impasse is being felt by the market! Watch out for August 2nd!!

The word is that not only is the economy slowing, but the effects of the debt crisis is going to cause a considerable amount of damage to the US Economy and our Dollar is going to sink faster!

Folks in Congress should stop their bickering and solve this problem and rise above their petty differences and stop trying to score political points and hurting average American folks!

Market down; Dow down -180, Nasdaq down -70!
Yahoo! Finance - Business Finance, Stock Market, Quotes, News

SamMoneyExpert,

Looks like your prediction was right on target today! Dow lost almost -200pts along w/ Nasdaq having lost -75pts! Wow, awesome insight!!

You absolutely right on the financial sector and insurance sector as well, they lost a lot of ground today!

__________________
Find a CPA near you!

Ask TaxGuru Please refer to the legal disclaimer.