goverment default

READER’S EDITORIAL: NIGHTMARE SCENARIO? BREAKING

By Nadin Abbott

October 9, 2013 (San Diego) As things go, this is not precisely the best of news. Fidelity has sold a lot of its government debt. So reports the Journal Sentinel.  Money market portfolio managers at Fidelity Investments have been selling off their government debt holdings over the last couple of weeks, said Nancy Prior, president of Fidelity’s Money Market Group. While Fidelity expects the debt ceiling issue to be resolved, the Boston-based asset manager said it is taking steps to protect investors.

Prior said that Fidelity no longer holds any U.S. debt that comes due in late October or early November, the window considered by many investors to be the most exposed if the government runs out of money and defaults on its obligations.

Now this is very dangerous news, since it means Fidelity is getting ready for the other shoe to fall. As we have been speaking here of the effects of this Constitutional Crisis, and how a minority of the minority does not believe this is actually serious. How could this affect you and me? We could see a crash, quite brutally honest. This is not good news. In fact, this is very scary news.