Summary: I expect the debt ceiling impasse to be overcome today as a result of a Senate-brokered deal. With this manufactured crisis out of the way, we can concentrate on earnings and on the economy. While US growth is on track, I expect earnings growth to be weak and growth to ebb from this point in the cycle forward.
As I wrote last night, US Senate leaders Mitch McConnell and Harry Reid have brokered a deal that looks to have buy in to be able to win approval in both the Senate and the House of Representatives. Most commentators expect this legislation to pass and be signed by President Obama later today. With default off the table, the US economy can regain its normal footing and the news flow will turn to other subjects.
The brokered deal does almost no...
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Edward Harrison is the founder of Credit Writedowns and a former career diplomat, investment banker and technology executive with over twenty five years of business experience. He has also been a regular economic and financial commentator in print and on television for the past decade. He speaks six languages and reads another five, skills he uses to provide a more global perspective. Edward holds an MBA in Finance from Columbia University and a BA in Economics from Dartmouth College.