GOP Blocks Debt Ceiling Vote

How will markets react to this bad boy when they open tomorrow?

From the Wall Street Journal:

The House on Tuesday rejected a $2.4 trillion increase in the federal borrowing limit—a symbolic vote that House GOP leaders said would demonstrate that Congress will not increase the debt ceiling unless it is linked to a deficit-reduction plan.

The vote Tuesday was 97-318, far below the two-thirds majority needed for passage.

Democratic critics called it risky political theatre, but Republicans were betting that financial markets would not be rattled by the measure’s defeat, which was all-but-certain.

Will the dollar be bought as the news is digested – or sold? How about Treasurys? Stocks? Gold?  What if no one cares and we all just go back to screwing around with Netflix and Lululemon?

We shall see.  Patience, young jedi.

Source:

House Rejects Debt-Ceiling Increase (WSJ)

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