This post previously appeared at the author’s blog.
One of the things that bothered me about the debt ceiling debate was that it seemed as if leading had vanished. The partisans in Washington apparently think that the only way to motivate the country is to scare the crap out of everybody.
This isn’t the first time this happened. It happened in 2008 with TARP. It happened in 2009 with the Stimulus. And it happened a week ago.
While the political idiocy has been consistent, I wondered about the market reaction? Is there a consistent pattern after Washington scares everybody into passing an economically controversial law?
I just wish the president and Congress could see that their words and their actions have consequences.