No government shutdown — for now

Bad news is that lawmakers once again opted for a short-term stopgap and avoided tackling the tougher issues
OCT 11, 2015
By  MFXFeeder
So Congress, in its infinite wisdom, avoided a government shutdown with an 11th-hour spending deal at the end of last month. That's the good news. The bad news is that lawmakers once again opted for a short-term stopgap and avoided tackling the tougher issues. As has become typical, the sticking point in the debate was not related to the government's functioning. It was an effort by conservative Republicans to remove funding for Planned Parenthood from the bill. After too much debate and too little constructive dialogue, the spending bill was passed and signed by President Barack Obama in time to keep the lights on in Washington. Until Dec. 11, anyway. But the country's fiscal house could fall into disarray much earlier than that, particularly after Majority Leader Kevin McCarthy, R.-Calif., backed out of the race to replace House Speaker John Boehner last week.

PARTY IN DISARRAY

As of press time, the Republican Party was in disarray, with no clear candidate to step in for Mr. Boehner, who, to his credit, said he would stay on until a new speaker is chosen. Originally he planned to retire at the end of October. (It was the late-September spending bill tussle that drove him to submit his resignation in the first place.) In just a couple of weeks, the federal highway fund will run dry unless Congress takes action. In the last six years, lawmakers have passed 34 stopgap highway funding bills. That's embarrassing. What good is a driverless car if the roads it travels on are in shambles? Maybe those working on that car should develop hovercraft instead. Then there's the debt limit. Treasury Secretary Jacob Lew has said measures used by the Treasury Department to hold off default would last at least through late October and probably longer. The default deadline is Nov. 5. In the past, Mr. Boehner has had to rely on Democratic votes to get a debt limit increase approved. During floor debate on the spending bill last month, Republican Rep. Tom Cole of Oklahoma called a government shutdown “the wrong thing to do.” He added that the American people “sent us here to get things done.” We couldn't agree more, but, alas, talk is cheap. Only when lawmakers match their lofty words with action — on a lasting highway bill, a sustainable debt limit deal and a long-term spending bill — will anyone be convinced that a government for the people is alive and well.

Latest News

Carson, Lido strengthen RIA networks with bicoastal deals
Carson, Lido strengthen RIA networks with bicoastal deals

Carson is expanding one of its relationships in Florida while Lido Advisors adds an $870 million practice in Silicon Valley.

Goldman gets shareholder backing on $80M executive bonus packages
Goldman gets shareholder backing on $80M executive bonus packages

The approval of the pay proposal, which handsomely compensates its CEO and president, bolsters claims that big payouts are a must in the war to retain leadership.

Integrated Partners, Kestra welcome multigenerational advisor teams
Integrated Partners, Kestra welcome multigenerational advisor teams

Integrated Partners is adding a husband-wife tandem to its network in Missouri as Kestra onboards a father-son advisor duo from UBS.

Trump not planning to fire Powell, market tension eases
Trump not planning to fire Powell, market tension eases

Futures indicate stocks will build on Tuesday's rally.

From stocks and economy to their own finances, consumers are getting gloomier
From stocks and economy to their own finances, consumers are getting gloomier

Cost of living still tops concerns about negative impacts on personal finances

SPONSORED Compliance in real time: Technology's expanding role in RIA oversight

RIAs face rising regulatory pressure in 2025. Forward-looking firms are responding with embedded technology, not more paperwork.

SPONSORED Advisory firms confront crossroads amid historic wealth transfer

As inheritances are set to reshape client portfolios and next-gen heirs demand digital-first experiences, firms are retooling their wealth tech stacks and succession models in real time.