But make no mistake, the debt issue is huge. We ran a budget deficit of more than 1-trillion dollars in 2012. So using 2012 numbers, if we need to balance the budget instantly, (if the borrowing limit isn’t raised) we must reduce spending by 1-trillion dollars. To avoid cutting entitlements (social security, Medicare, etc.), available funds would have to come from 2-sources: (1) discretionary spending ($615-billion) and (2) Defense spending ($670-billion). Even if we eliminate ALL discretionary spending, to make up the shortfall we’d need to cut the Defense expenditures in half. Now, the numbers are a little better than 2012, because revenues are now higher than they were, but the point is clear. Instant balancing of the budget is a calamity…no bull.
BREADTH (%-ADVANCING) IN RED AND THE S&P 500 IN BLACK
Tuesday, the overall long-term NTSM analysis remains HOLD at the close.