The Weekly Wire: What's Behind Door #3?
The article titled "The Weekly Wire: What's Behind Door #3?" discusses the recent bipartisan agreement in the U.S. Senate to raise the debt ceiling by $480 billion to cover government cash needs until December 3rd, linking this political development to the probability puzzle known as the Monty Hall Problem from the TV game show "Let's Make A Deal."
🎟 Don't Miss Our Limited $849 Ascent Offer — Save $350 With Code ASCENT27EB. Register Now →
The Weekly Wire: What's Behind Door #3?
Wealth Management
October 11, 2021
October 11, 2021 12:01 PM
Share: Facebook Twitter LinkedIn Email
“What’s behind door number 3?” is a question very familiar to fans of the long-running TV game show “Let’s Make A Deal.” Well, maybe to fans of a certain age as it seems the latest incarnation of the show has moved on from doors to curtains (in the spirit of full disclosure, most of my viewing of LMAD took place during the 1970s when the show’s original host and co-creator, the late, great Monty Hall, was handling the hosting duties). For those of you who enjoy probability puzzles, we suggest you check out this video that explains “The Monty Hall Problem,” which is a pretty famous—and pretty cool—brain teaser, loosely based on the TV show.
With that said, we pivot this week to the news last week that Democrats and Republicans had reached an agreement to raise the U.S. debt ceiling into December – hence the focus on Let’s Make A Deal. More specifically, the Senate agreed to raise the U.S. borrowing limit by $480 billion, which is the amount of money the Treasury Department has said is needed to meet the country’s cash needs until December 3rd. The bill now goes to the House, where it should pass, and then onto the White House where it would be signed by President Biden. This is only a temporary solution to the debt ceiling dynamic, and the path forward from December 3rd is unclear, as Republicans continue to argue that Democrats should use the budget reconciliation process to raise the debt ceiling, while the Democrats continue to argue that the reconciliation process is too risky and time consuming to be used to raise the debt ceiling. So, there is a very good chance we will all be right back here in two months’ time. For now, though, we think investors are cheering the deal as stocks rallied during the first full week in October, after enduring a rough September. The market hates uncertainty; and at least for the next few months, there is certainty as it concerns the government’s ability to pay its bills.
The views expressed are those of Brinker Capital and are not intended as investment advice or recommendation. For informational purposes only. Brinker Capital Investments, LLC, a registered investment advisor. 2564-BCI-10/4/21
Copy link
âś“
Thanks for sharing!
Find any service
A2A