Well, we know one thing for certain: When you raise the debt ceiling you are guaranteed to end up with more debt.   Whether or not President Obama’s most recent spending bill is a good idea is not worth debate.

Since 2008 the US government has spent an unprecedented amount of money to revive the economy – increasing national debt by some $6 trillion. All we have to show for it is a 9% unemployment rate and these recent Wall Street Journal headlines:

Household Income Falls, Poverty Rate Rises

            Economists Raise Recession Odds, Doubt Fed Can Help


Too much debt can drive a country into ruin just as easily as it can destroy a subprime mortgage borrower – ask Greece, Spain, Portugal, or Italy. There’s no reason to argue what is already plainly clear: escalating national debt threatens security and investment returns. Besides, it doesn’t work. If massive government spending could solve economic woes it would have started to work by now (we’re talking trillions of dollars spent to date.)

Investors should take note and approach investment defensively until these hostile market conditions change.

But what needs to be changed? What will signal a major investment opportunity?

Starting next week I will address this by beginning an intermittent blog series called, Fixing the Marketwhich will appear on slow news days, when nothing much changes in “the market.” Each blog will address an economic problem and offer solutions to correct course. These are the changes investors should be looking for.  They will signal a significant change in market condition and will create a robust environment for maximum investment returns.

Because that’s what the market needs right now — an attitude readjustment.