If congress doesn't agree to raise the debt ceiling the U.S. runs the risk of losing its great credit rating. That will mean that the U.S. Government pays higher interest on its debts. And , all other interest rates will rise. All of which makes EPD less attractive to holders who buy for the 5.5% rate.
ok. but consider this interest rates are being held or maniputlated at artificially low rates. this allows the goverment to borrow and spend at will. this must stop and now is the time. if we "kick the can down the road". make me puke. then we will only suffer a much greater problem in the future..jmho.mw
Nope, a low interest rate, low dollar situation is just bad for China (that has increasing wages and inflation) and the corporations that have sent manufacturing abroad. It is good for you that live in the US, that is receiving small salary increases and own EPD as well as companies investing in the US.
Not necessarily. Look for the gov to come to grips with the spending issue if our rating is downgraded, look for Treasuries to get support from the weakening economy (which is why all the headlines are about the debt ceiling - smokescreen) and look for international investors to pile into Treasuries as the safe haven. Until the economy picks up, Treasury rates will remain low.