I Would Vote No On The Debt Ceiling Deal

Paul Krugman

Photo: NYtimes.com

I guess I have to be explicit at this point: yes, I would vote no. What about the catastrophe that would result? Several thoughts. First, what I keep hearing from people who should know is that Treasury won’t actually run out of cash tomorrow, that it still has a few more days.

Second, the people who claim that terrible things would immediately happen in the markets also claimed that there would be a big relief rally once a deal was struck. Not so much: the Dow is down 121 right now. Third, the idea that a temporary disruption would permanently damage faith in US institutions now seems moot; if you haven’t already lost faith in US institutions, you’re not paying attention.Read the rest of this article at The New York Times.

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