What else can one say about an organization that consistently runs its finances in the red year after year. It is something no self-respecting CEO would ever tolerate, unless it was going into their own pocket. Hmmmm, now that is a intriguing thought, but oh, perish the thought. How could we even think such an outrageous thing?
According to a report from Dick Bove, the vice president of equity research at Rafferty Capital Markets, it indicates the balance sheet of the United States is, in the parlance of the common, overdrawn to the tune of $16 trillion. That is right, assets total $2,748,300,000 and liabilities total, drum roll please, $18,849,300,000. Ouch! If you are playing golf, being in the hole is great. If we are talking about our national finances, not so much.
Due to the sequestration which resulted in a decline in deficits, there is no shortage of bright sunny optimism coming out of congress these days regarding the probability of a resolution to the debt question, unfortunately it is an optimism Mr. Bove, does not share.
“I do not believe that a realistic plan is likely so I tend to be somewhat negative,” Mr. Bove observed. “The basis of my pessimism is the magnitude of the problem and the inability of well-intended people to figure out how to solve it.”
“Unless the policymakers are willing to develop a long term plan that everyone can agree upon, the political debate will continue and no resolution will develop,” he lamented. “That will negatively impact the economy and the equity markets.”
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