Warren Buffett has a phrase for every situation. When asked about the debt crisis, he compared it to virginity. You can preserve it, but you can't restore it.
He said the reputation of the US has been built over 237 years. One default could topple that reputation, and it could not be restored. Buffett likened default to a nuclear option.
Thankfully, we've hung on to our virginity... AND our reputation! The bomb was neutralized at the last second. The Senate reached a deal, and the House will choke it down. We are all breathing a sigh of relief at this latest development. Markets are taking a nice, green bounce today in response.
As an investment advisor, enduring times like these is maddening. All you can do is sit and wait for the crisis to pass and hope that cooler heads prevail. Today, that happened. Now, we can get back to the business of business.
The economy should sputter and kick back into growth mode within a few weeks. The last quarter of 2013 should be a good one... unless they start fighting again!
"Like a virgin..." I'm putting in my ear buds and cranking up Madonna's old tune. Time to dance. Time to sing. We have preserved the purity of US debt!
Next time, I'm ordering a chastity belt.
Independent, Fee-Only Financial Advisor
