And the Market Fell

 

I noted that even though the Fed decided not to raise interest rates yesterday, the markets fell. 

That seemed weird to me. I thought the good news would cause the markets to rise.

But then, I read the news about the budget crisis and the looming government shutdown. This is that reason that the U.S. credit rating was reduced some months ago. We have leaders who are working to instill chaos into the markets and the world to work for their own delusional personal advantage. 

One writer summed the budget crisis up as follows:

Extremists in the House Republican conference are refusing to acknowledge the deal worked out for the budget last spring by President Biden and Republican speaker of the House Kevin McCarthy (R-CA). Instead, in order to pass even a continuing resolution that would buy time for Congress to pass an actual budget, they are insisting on cuts of up to 8% on discretionary spending that Senate Democrats, as well as Biden himself, are certain to oppose.

The White House has noted that the cuts the Republicans demand would mean 800 fewer Customs and Border Protection agents and officers (which, in turn, would mean more drugs entering the United States); more than 2 million women and children waitlisted for the WIC food assistance program; more than 4,000 fewer rail inspection days; up to 40,000 fewer teachers, aides, and key education staff, affecting 26 million students; and so on. 

House speaker McCarthy cannot corral the extremists to agree to anything unless they get such cuts, which even other Republicans recognize are nonstarters (those cuts are so unpopular that Jake Sherman of Punchbowl News reported today that Republicans are somewhat bizarrely considering changing their messaging about their refusal to fund the government from concerns about spending to concerns about border security). (Letters from an American)

Until the House Republicans can get their stuff together, we are in for a bumpy ride. 

And the markets, likely, will continue to fall. 

My answer would be for the speaker to try to find 5 or 6 republicans to work with the democrats and keep the government running. But, I guess that would be political suicide. That would be an incredible picture of bipartisanship. 

-- Bob Doan, Weston Lakes, TX