The news about the debt supercommittee — the Joint Select Committee on Deficit Reduction — is not good. According to the Washington Post, the supercommittee members have gone on the Sunday talk shows to effectively concede they won’t succeed and to begin to prepare for the impending failure.
We can expect that each side will blame the other. Congress might not be able to make hard decisions, but they are peerless in shirking responsibility for failure. Even more sad, yet predictable, Congress also is talking about deactivating the automatic spending cuts that were supposed to make a grand compromise more likely. If they do that, of course, the entire supercommittee charade will be exposed as a silly sham that has done nothing except demonstrate that our leaders lack the discipline and the will to make tough choices — even when the grim example of countless debt-ridden Eurozone countries shows clearly what ultimately will happen if our constant deficit spending habits are not curbed.
We are seeing an amazing lack of leadership in Washington, D.C., from the President on down. Hang on to your hats tomorrow; if the financial markets get the idea that the supercommittee will fail and that no cuts of any kind will be made, we may be in for a serious stock market meltdown.