“…we know of no melt-up that had legs of more than a few months after the point that irrational exuberance went full retard, as is happening at this very moment.”
“That refers to Wall Street, Washington, the Dems and the GOP, and all the far and near corners of the planet which are implicated in their collective follies.”
And to the extent the fate of Harvey victims and markets were subjugated in his mind to his own approval ratings, the interests of his party were simply pushed aside altogether. Which apparently surprised a lot of Conservatives although I’m not sure why. Was anyone in the GOP really under the impression that Donald Trump cares one way or another about conservatism? Give me a break.
Seemingly unwilling to risk any further damage to his already low approval ratings, Trump ultimately decided to go ahead and take the drama out of the debt ceiling debate, striking a deal with Democrats – much to chagrin of the GOP. We’ve now got a new lease on life – until December. And even that…
DEMOCRATS, TRUMP AGREE TO DEBT LIMIT EXTENSION
TRUMP, CONGRESSIONAL LEADERS AGREED ON HARVEY, DEBT LIMIT, CR
SCHUMER, PELOSI: GOVT FUNDING, DEBT LIMIT EXTENSION TO DEC. 15
TRUMP, CONGRESS AGREE ON HARVEY AID, DEBT LIMIT, CR THRU DEC.15
There’s still quite a bit of confusion out there with regard to exactly what it is that lawmakers are debating in Washington. Americans are an apathetic bunch and unless something directly impacts their lives, they generally don’t care. That’s understandable and indeed, it’s entirely forgivable under most circumstances. Because it’s not always clear what’s “apathy” and…
The bottom line is that between another powerful hurricane approaching the U.S. mainland, U.S. markets catching up with their global counterparts in terms of pricing in North Korea after the long weekend, the DACA decision which portends more bickering in Washington, and the looming debt ceiling debate (with the specter of a technical default showing up in today’s decidedly poor 4-week bill auction), it was death by a thousand cuts.
Whatever the case, the assumption here is that this will get done come hell or high water (with the latter having already arrived in Texas and the former well on its way between North Korea and Irma).
If you were following along last week, you know that more than a few commentators believe rates and the dollar have simply priced in too much pessimism around the U.S. economy and the fiscal outlook. No, the incoming data hasn’t exactly been what one might call “gangbusters” and the prospects for tax reform and fiscal…
“Well, that’s nothing to be proud of, Rusty…. 50 yaaaards.”
“That sends all the wrong message.”
Well, if you were looking for the silver lining in the catastrophic flooding that accompanied Hurricane Harvey, Goldman is happy to oblige.
“Instead, the broken glass could end up hampering subsequent agreement on the elements of tax reform, where the list of winners and losers can be devilishly divisive if the process is mishandled.”
Do you still have questions about the looming debt ceiling debate and the possibility of a government shutdown? Sure you do. Not the least of which, I’m sure, is this: “why in God’s name would a President risk a U.S. default and a government shutdown over something as ridiculous as funding for a border wall…
The situation is so surreal that reality is now its own joke.