Perspective on U.S. Fiscal Situation
In case anyone thought America’s massive deficit did not have implications for investors, the stock market drop in the wake of Standard & Poor’s decision on April 18 to reduce its outlook on the credit quality of the United States might give them pause. The unexpected move by Standard & Poor’s this week overshadowed the 2011 fiscal budget deal recently passed by Congress. However, the fiscal-budget actions to address the deficit so far have not been meaningful: the recent budget deal between Congress and President Obama cut nearly $40 billion in spending, but reduced the burgeoning federal deficit by only a small fraction. Click HERE to read this interesting review from Fidelity.