Earlier this week it emerged that John Boehner had reached out to Wall Street executives to get a sense of how far the GOP could push the debt ceiling issue without causing a major market problem.
POLITICO’s Ben White notes that the discussion is going in two directions. Financial executives are reaching out to Congress, imploring them to pass a “clean bill,” allowing the debt ceiling to rise without any strings attached.
Jamie Dimon, of course, has been very public about his view that it will be a catastrophe if the debt ceiling isn’t raised.
The problem, as we see it, is that the Wall Street endorsement isn’t worth very much. There’s a wide perception that the “banksters” got the economy into this mess, and that if they want the debt ceiling raised, then it must just be another bailout that enriches the fat cats at the expense of taxpayers.
This is wrong, of course. The implications of a default (if it came to that) would be massive. But bankers are probably the worst advocates of this dire view.