Thursday, October 8, 2015

As the House devolves into mayhem, Wall Street starts to panic

As with everything the Republican party does to self-destruct, there's a downside for the rest of us. In the Kevin McCarthy-created chaosof a leadership vacuum in the House, Wall Street and Senate Minority Leader Harry Reid are raising that red flag.
Chaos in the U.S. House of Representatives makes an already scary autumn even more uncertain for Wall Street with debt limit and shutdown fights looming and no one clearly in charge. […]

"We will not mince words—this is the political equivalent of a dumpster fire," said Chris Krueger of Guggenheim Securities. "We are increasing our odds from 30 percent to 40 percent for some kind of accident that would keep Congress from raising the debt ceiling in time due to brinkmanship, procrastination, or political gridlock."

Reid echoed that sentiment:
"The utter chaos of the Republican party must not threaten the full faith and credit of the United States and the American people," Reid wrote. "While negotiations on a budget deal continue, we should work together immediately to take the threat of default off the table."

"Republican chaos is likely to get worse before it gets better but the economic livelihood of the American people should not be threatened as a result of Republicans' inability to govern," he continued.

Meanwhile, Senate Republicans are—get this—accusing the White House of "playing politics" with the debt limit. This, from Sen. Roy Blunt (R-MO), encapsulates their claim. "'There is nothing that the White House considers more flexible than the debt ceiling deadline.' […] Asked if the Nov. 5 deadline is an attempt to jam the GOP Congress, he replied: 'Yes.'" That was before the House devolved into utter mayhem, so perhaps Senate Republicans would care to rethink that, and just might see the wisdom in current and maybe-forever Speaker Boehnertaking care of this rather critical business sooner rather than later.

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