Investors might recall the media frenzy that was whipped up over the Y2K brouhaha at the end of 1999.  Billions were spent preparing for an impending technological Armageddon or at least ... total gridlock.  Cars were certain to crash at every intersection.  Banks would find electronic vaults empty.  And computerized airborn planes were ... well ... doomed.

Well an unexpected thing did happen on January 1st 2000.  The sun rose in the east and set in the west!  Cars started!  And life went on. 

We are currently faced with a similar frenzy whipped up over the pretense that a financial Armageddon will ensue if Washington leadership doesn't come together on raising the debt ceiling.  Is it a serious issue? Absolutely!  But let's keep it in context.  And more importantly, remember that this is a media driven event.  The media is all about reporting drama.  And drama is about conflict; without conflict there is no drama.  And we are a society that loves drama.

Are we really worried if Moody's or Standard & Poor's downgrade our debt?  These are the same rating agencies that gave triple A ratings to subprime mortgage pools;  pools that caused the debt crisis.  These rating agencies have no credibility and the market knows it.  They have made themselves irrelevant ... aside from psychology.

Effectually, US Government debt (and all debt) has already been downgraded by the markets.  Is there an investor on the planet who thinks US debt (or any debt) is risk free?  I don't think so.  Is our debt still safer than debt issued by China, India, Russia, Greece or the European Union?  I'll let you decide.  But the former countries are still buyers of our debt.

The August 2nd deadline will come and go ... probably without a resolution.  Here is our advice.  Get up, pull your pants up and go start your car.  Opportunities abound.  Limitations are simply the beliefs and restrictions we place on ourselves!