Anyone who has ever been the subject of ongoing bad press coverage knows the importance of riding out the news cycle. Despite all your efforts to pry yourself from the front pages, the only sure-fire way to get out of the headlines is for something bigger to come along and divert the media's attention.
In much the same fashion, the nation (and increasingly the world) are justifiably fixated on the stand-off in Washington, with the Dow Jones Industrials now down about 4.5% since hitting an all-time high three weeks ago in the aftermath of the Fed's September meeting.
Of course, until an agreement is signed and the debt ceiling officially raised, the default risk - however small - cannot be entirely eliminated. But in the meantime, many on Wall Street just can't be bothered worrying about it.
"I think the risk of ultimate default on U.S. debt is pretty remote," says Michael Cuggino, the president of Permanent Portfolio family of funds, in the attached video. As much as he, and most market watchers expect a repeat of the Congressional show-down of 2011, he says "the devil will be in the details" of the eventual agreement.
"It's an inconvenience at the moment, but I don't think it has any long term effect," he says.Read More »from Here’s Why Wall Street Will Be Blind-Sided by Default