The big story of the day: What does Washington DC do now, now that John Boehner’s “Plan B” vote failed to pass the House.Markets are interpreting the situation as bad news on the Cliff front (which may or may not be the correct interpretation).
US futures are down well over 1%.
That’s a bit better than the worst moment of the night, when Dow futures were down 265 points, just after 8 PM ET.
Europe is off, but a bit less so.
Japan lost about 1%.
While last night’s events were dramatic, the negative spin seems a bit forced.
As we explain here, people seem to be assuming that because Boehner couldn’t wrangle the votes for his ‘Plan B’ that he can’t wrangle the votes for any deal. But in any compromise, he will lose a lot of Republicans either way. So the conclusion that no deal this year is possible seems premature.