The congressional debt committee was over on Monday morning after unsuccessful negotiations regarding the issue on debt reduction. The main issues were the rising health costs and an unwieldy tax code. Therefore the committee had to come up with a minimum of $1.2 trillion dollars to help solve USA’s financial crisis. This failure took a toll on the stock market as Dow Jones’ shares went down by 2%. Throughout the negotiations the main issue remains the disagreement about ways to raise tax revenue, and reduce spending. Just as with the NBA Lockout issue both parties are accusing each other of lying and concealing information, which has furthermore caused a rift between the two sides.

This debt issue can be related to the “Finance & The Recent Crisis” lecture. The fear over this non-resolved has negatively affected future economic forecasts, and therefore the shareholders decided to sell their shares in fears of stock crisis. This crisis symbolizes a dysfunction in communication between the two parties. This along with the accusations of lying, and the mistrust atmosphere has negatively affected these negotiations. Therefore its increasingly difficult for a deal to be made since the two sides have to work through the personal issues impeding their progress.

Work Cited:

Sahadi, Jeanne. “Debt committee calls it quits without a deal – Nov. 21, 2011.” CNNMoney – Business, financial and personal finance news. N.p., n.d. Web. 22 Nov. 2011. <http://money.cnn.com/2011/11/21/news/economy/debt_committee_failure_final/index.htm?iid=Lead>.