With the fiscal cliff looking more like a fiscal bump, the big debate is coming.
The DEBT CEILING.
Up until the last few years, the United States ability to borrow was rubber stamped by Congress. That it failed to do so a few years ago led to the USA's downgrade of debt largely because of the fact that the US govt looked disfunctional.
Well, in March 2013, the USA will need to increase the debt ceiling or it could be deja vu.
I believe any President should have the ability to raise the debt ceiling, he or she shouldn't be held hostage by congress in times of distress, war, etc.
I think the fiscal bump will be reactively worked in february/march with a grand bargain to include the debt ceiling. Call me an optimist but that's the way I see it.
Until then, the stock market will surely go down and sideways at best. I think caution is the word of the day and boomers especially should be careful. Nothing wrong with being in cash during times of uncertainty!