POTENTIAL MELTDOWN (2)

April's potential meltdown was narrowly avoided. But that doesn't mean that it has gone away. Indeed, if an agreement to raise the U.S. debt ceiling is not done by 2 August, then the Federal Government will have to start shutting down and/or default on its debts. Neither prospect is at all appealing.

Talks aimed at getting that agreement are currently going on between the various parts of Congress and the Administration. The issues are the same as they were three months ago; so too is the gulf between the various parties. Expect this one to "go down to the wire", as they say in America.

Walter Blotscher