The markets have been down all week until today, posting very small yet still positive gains today. After the Fed's surprise "no taper" announcement last week, the markets irrationally skyrocketed for a day or two. They have been nose diving since, as fear that congress may allow the US to default on it's debts sets in.
Congress is in another debt ceiling debate, where the debate whether to raise the debt ceiling so the US can pay it's bills and honor it's financial obligations. Currently the US will run out of money by early to mid October if the ceiling is not raised, and this would result in the US defaulting on it's loan payments. This would prove catastrophic.
Everything points to congress reaching a decision about this on Monday, September 30th. Considering tomorrow is Friday, I think we'll hang in there on some down-side plays and then pull out by the end of Friday, then wait and see what the markets do on Monday.
In other news, it was revealed today that in the month of September so far, companies have issued a record amount of bonds as rates have been so low that it becomes very financially "advantageous" to do so. A big part of this too could very well be fueled by the Fed's own bond buying program.
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