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Wednesday, November 25, 2015

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Financial Juggernaut? Or Not?

Financial Juggernaut?  Or Not? (2-13-14) Since the House of Representatives voted to suspend the US debt limit until March 2015 – and passage by the Senate seems quite likely – this will be the first time since 2008 that a debt limit extension is actually going to happen.

This is interesting in itself since the Republicans have essentially folded on the issue, it tells us how actually weak they are. It also demonstrates how deeply the Republican Party has been divided by the actions of the Tea Party because they're the ones who have delayed the continuing resolution by digging in their heels. They had delayed the debt limit ceiling twice before -- with bad consequences for the markets. The markets sold off and the Republicans got blamed for it, particularly in financial media.

This time they decided not to make an issue of it because they couldn't get any support in the so-called mainstream Republican caucuses to block it or even attach any amendments. The last time this happened the Tea Party people were at least able to attach some amendments which slowed ObamaCare.

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