Debt Ceiling Looms!


July 29, 2011

As we approach the August 2nd deadline, Congress continues to astound us with their incompetence and inaction. The latest Boehner bill wasn’t even brought to the House floor for a vote.

We still believe that the Federal government will be able to avoid default, but it will probably lose its AAA credit rating. 

We are going to lay out what we think is the most likely scenario:

    • There will be some compromise to allow the debt ceiling to be increased.
    • The ceiling will only be increased by about a trillion dollars.
    • The whole issue will have to be revisited within 6 to 12 months.
    • There will be a downgrade of U.S. debt from AAA to AA.

Any action short of a $3 to 4 trillion bill will have enormous repercussions. We will discuss that in more depth in future articles.

Maybe we should just turn off the TVs, radios, and smartphones until next Tuesday, then hope we will wake up to a brighter day!

Stay cool and stay tuned!


Edward J. Kohlhepp, CFP®, ChFC, CLU, CPC, MSPA

Edward J. Kohlhepp, Jr., CFP®, MBA


To read our previous newsletters on the debt ceiling issue, click here and scroll to the bottom to view our archived newsletters.


Please contact us whenever there are any changes to your financial situation, personal situation or investment objectives.

Finally, A Debt Deal Gets Done
Osama bin Laden's Death & Global Markets

Archived Newsletters

Investment Updates

Newsletters Sign Up

Account Login

Contact Info

Kohlhepp Investment Advisors, Ltd.
3655 Route 202, Suite 100
Doylestown, PA 18902
Phone: 215-340-5777
Fax: 215-340-5788

Securities offered through Cambridge Investment Research, Inc. a Registered Broker/Dealer, Member FINRA/SIPC. Investment Advisory Services offered through Kohlhepp Investment Advisors, Ltd., a Registered Investment Advisor. Kohlhepp Investment Advisors, Ltd. and Cambridge Investment Research Advisors, Inc. are not affiliated.

Due to various state regulations and registration requirements concerning the dissemination of information regarding investment products and services, we are currently required to limit access of the following pages to individuals residing in states where we are currently registered. We are licensed in the following states: AZ, CA, CO, DE, FL, GA, IN, KY, LA, MA, MD, NC, NJ, NY, OR, PA, RI, SC, TX, VA, VT, WA

Check the background of this firm on FINRA's BrokerCheck