US debt rules the headlines these few weeks.
I think it will become a non-issue this week. When push comes to shove, the US government and politicians will eventually find a way to get past this, till the next round of wrangling at the elections.
Moving on, the spotlight likely returns to Europe where I have little faith in a resolution of the sovereign debt crisis without much market volatility.
Even with Greek selective default and ‘co-operation’ by private creditors, I don’t see any meaningful way for Greece to reduce its overall debt levels in the near term. Contagion to the rest of P.I.G.S is real.
‘Mr Market’ is more likely to punish then to spare the rod.