The financial media is rife with misinformation on the debt ceiling and the jump in interest rates. However, a history review shows that the debt-ceiling issue is not only a non-crisis but also the recent rise in rates is likely an opportunity to buy bonds.
Let’s start with the media scare tactics over the debt ceiling:
1. If Congress doesn’t raise the debt ceiling, the Treasury Department will run out of money.
2. The United States will default on its debt.
3. The markets and economy will crash.
While there is a grain of truth behind these statements, they are largely false. However, for the media, a manufactured crisis should never be allowed to go to waste. To wit:…