PR and Marketing Manager
MEDIA ALERT: July 28, 2011
UMD BUSINESS FACULTY AVAILABLE TO EXPLAIN ISSUES SURROUNDING DEBT CEILING DEBATE
Finance and economics faculty experts at the University of Maryland’s Robert
H. Smith School of Business are available to comment on the federal debt ceiling
debate. They can help explain the implications for the global economy should a deal
not be reached, and they can provide perspective on why the political fight has
been raging in Washington.
*The Smith School has an in-house facility for live or
taped interviews via fiber-optic line for television or multimedia content.
This issue is not going away soon.
Albert “Pete” Kyle, Smith Chair Professor of Finance
“The debt ceiling issue is not a substantive economic issue but rather an important
issue of perceptions, which gives politicians an occasion to score points with one
another. The substantive issue is whether the US will have an economically viable
debt-to-GDP ratio over time. Managing the debt-to-GDP ratio appropriately requires
bringing the deficit under control, increasing the domestic savings rate, and generating
sustainable long-term economic growth. Thus, regardless of what happens to the debt
ceiling, policies regarding taxes and spending will remain important and politically
divisive for many years.” -- Kyle is an expert on the banking industry and financial
markets. He served as a staff member on the Brady Commission after the stock market
crash of 1987 and has been a member of NASDAQ’s economic advisory board.
“An extension should keep the markets from imploding”
Clifford Rossi, executive-in-residence and finance teaching fellow
“The House proposal doesn't appear to have enough support and the Senate plan
is unlikely to get some of the needed votes on the Republican side. I think they
may well extend for 30 days as the only viable solution to buy time. The markets
are counting on some solution and so an extension should keep markets from imploding.
But if there's no solution then I believe we will see a short-term deep decline
in equities. Long-term should see things improve on equities. Bonds are trickier
- Treasury prices on longer instruments will decline as yields rise to reflect a
downgrade, but short-end might hold up.” --Rossi has more than 25 years in the banking
and regulatory industries, most recently at Citi Group where he headed risk for
their domestic and global mortgage portfolio.
Counting on a compromise
William Longbrake, executive-in-residence
“There are five or six scenarios. Failure to raise the debt ceiling by August
2 is unlikely, but could happen.”--Longbrake has extensive experience in finance,
macroeconomics and monetary policy, risk management, housing, public policy and
academia, government, serving both the public and private sectors.
Curtis Grimm, economist and dean’s professor of supply chain and strategy
“The answer is clear – we have to raise the ceiling. And we need to get serious
about reducing the long-term deficit. There are plenty of ways to do this.” –Grimm
is a strategy expert and teaches and MBA course on the global economic environment.