Let’s start with one of the worst financial crises that can hit an individual or family – bankruptcy. Increased bankruptcies are just one of the likely outcomes of the latest congressional action to sabotage the barely noticeable economic recovery. Let’s call it the sequestration stimulus program.
Sequestration is a mandated budget cutting process that kicks in should Congress fails to pass a budget that includes spending cuts required by the 2011 Budget Control Act. This was part of the deal to get the debt ceiling raised in August 2011, our last budget drama. Nondefense spending will take a 5% hit and, the sacred cow, defense spending, will be reduced by 8%. The cuts are applied across the board to discretionary programs (Social Security and Medicare are excluded). Read More