StanCollender'sCapitalGainsandGames Washington, Wall Street and Everything in Between



The Two Most Exquisite Ironies Of The Debt Ceiling Fight

18 Jul 2011
Posted by Stan Collender

1. On the one hand, much of Wall Street is insisting that the whole fight is political theater and that Congress and the White house will work something out. On the other hand, congressional Republicans are insisting that Wall Street won't react negatively if a deal doesn't get done.

In other words, financial markets aren't yet reacting because they think a deal is in the offing and the GOP isn't cutting a deal because it doesn't think Wall Street cares.

2. On the one hand, congressional Republicans are using the debt ceiling as a weapon to force the White House to accede to their wishes on spending cuts. On the other hand, the GOP in the House and Senate insists that not raising the debt ceiling will have no impact.

So...We say that not raising the debt ceiling won't have an impact that we have to worry about but you had better be worried because it's going to hurt come August 3.

Ironic...

Ironic also that the same Republican house members that are saying, "No more debt!" also voted for the Paul Ryan budget, which would add trillions to the debt.


Was wondering when CG&Gers were going to weigh in...

We know you're swamped with the blow by blow with financial clients et al, but a succinct analysis is a useful thing. I think a lot of folks outside the beltway (beside the Tea Pariers) may think it's the same old same old (just perhaps Russian roulette with a couple of chambers loaded this time). I think I saw something re a Fiscal Times slideshow re real people continuing to suffer in the economic downturn (not there's a big surprise).

THANKS


Ironic

They all, the little government crowd, voted for huge waste in the $649B "defense" bill.

Small government libertarians for empire!




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