Business Blog

Stock market happy, but for how long?

I've been watching the  stock market spike to a new high with the news this morning that the Federal Reserve is not yet going to taper its bond purchases. While the market is reacting positively, this might also create a perfect storm of ugliness next month, according to this (link) Wall Street Journal blogger.

According to the blog post, this decision means the government will hit the debt ceiling at the end of October if no agreement is reached beforehand. Add to this the fact that the federal budget needs to be in place by Oct. 1.

The month of October is also known for its volatility for other factors (third quarter sales numbers announced, etc.), so the coming weeks promises to be an interesting time for the national economy.