THE NYTIMES SAYS APTLY: THE SENATE HAS KILLED THE BILL.
I THINK THEY ARE KILLING THE ECONOMY, AS WELL. IT'S NOT JUST ME EITHER:
Austan Goolsbee, the departing chairman of the president’s Council of Economic Advisers, pointed to weakening confidence by consumers and businesses as evidence that months of battles over government borrowing and finances had taken a toll.
“Uncertainty over the debt ceiling has been radioactive,” Mr. Goolsbee said. “You certainly don’t want to give yourself multiple doses in a short period of time.”
WITHOUT A DEAL, WE ARE HEADED FOR A CRASH AT LEAST AS BAD AS THE ONE LAST CENTURY.
LET ME BE CLEAR ABOUT THIS: I DON'T THINK A CRASH IS WARRANTED, BY ANY RATIONAL MEASURE; I BELIEVE THAT THE IRRATIONAL EMOTIONAL RESPONSE IN THE MARKETS WILL BE DEVASTATING.
MANY COMPANIES WHOSE PROFITS COME FROM IMPORTING VAST AMOUNTS OF PRODUCT FROM ASIA HAVE PUT ALMOST EVERYTHING ON HOLD UNTIL THIS CRISIS IS SOLVED.
AS A RESULT, THINGS HAVE GROUND TO A HALT IN MANY BUSINESS/TRADE ARENAS.
THEY SIMPLY DO NOT KNOW WHAT WILL HAPPEN TO THE DOLLAR (AS A RESULT OF THE EMOTIONAL RESPONSE TO A POSSIBLE DEFAULT) AND CAN'T RISK GREATER EXPOSURE.
I'LL PUT THI IN FINITE TERMS - MAKE IT A PREDICTION:
WITHOUT A DEAL - ANY DEAL -BY NEXT FRIDAY, THERE WILL BE A CRASH OF THE US STOCK MARKETS AT LEAST AS BAD AS THE ONE IN 2008, AND THE DOLLAR WILL CRASH AS WELL TO ITS LOWEST LEVEL EVER.