Not sure what you mean by US defaulting. If you mean congress not raising the debt ceiling this has now happening about once a year and selfdoms causes a ripple in the market. Congress know they have to raise it or all their favorite perks will stop. So it just becomes a wait to see which party can make the other look like they were responsible. Even the employees that are laid off get back pay once the ceiling is raised. it is 100 % political with no impact. It is great for lots of news headlines.
Corrections are caused by the balloon getting too much pressure in it then some unforeseen event puts a hole in it and pop, their we go. Whoever thought that a small invest bank like Solomon Bros which had been shrinking since the 1990s and having problems for years going belly up would cause the banking crisis. Remember all their customer accounts were still funded and being moved to other banks it was just their ability to pay their own bills.
LYC Price at posting:
$8.45 Sentiment: None Disclosure: Not Held
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