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.