Ateneo Professor on Entrepreneurship
Many newsrooms are flashing with declining share prices in major capital markets, supposedly on concern over the debt limit issue at the US. This has been increased to $16+ trillion last August 2011, and this limit will be breached soon (this October) The US Secy of Treasury (and the Pres) has been pushing Congress to pass the law.
Many foresee the repeat of partisan politics which prevented the early passage of this law in 2011. As a result US debt was downgraded
The current debate for the debt limit however is sending many share prices world wide on downward slide. The US is still seen as the center for innovation, leadership, and financial strength. The US dollar is still as the currency of choice for trade and Central Bank Reserves The US debt level, and the political uncertainty casts doubt on that perception.
I hope this issue is resolved soon.
Will this problem pose further threat on the US dollar and world capital markets?
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