An outright default is generally agreed to be the most impossible outcome of the situation, but other options aren't necessarily great. A long term deal is most desirable from a market standpoint. Understanding what the fiscal situation will be for years down the line gives more confidence to market participants, even if they don't like the equation. A temporary deal may give a bit of breathing space, but it is unlikely to impress. A temporary deal may only further erode the trust of market participants in our politicians to get important things done in a reasonable manner.
Independent, Fee-Only Financial Advisor
