Most of the action in the equity markets was a 'technical trade' because the punters are edgy to take serious positions while the US government's sovereign debt is being held in what is essentially a hostage situation by a minority in government, that does not like the existing healthcare law, but does not have the votes and the sanction of the people to do anything about it other than threaten the US credit rating.
Like a lot of people I thought that a single payer system made much more sense than an extension of the private healthcare insurance monopolies. But that was not in the cards, and so a compromise was reached. And now the parties who don't like the compromise which to hold the government debt hostage while they try to get their way. This is not government. One could accept civil disobedience amongst private citizens, but in lawmakers it is embarrassing and unseemly.
And I do not believe for one minute that this hostage taking is in the genuine interest because they believe that the law will harm the country. Think about it. They are saying that we think this is going to harm the country, so we will harm the country first, and in a potentially more substantial way. How nuts is that?
No, they are afraid that the law will work, and people will come to accept it. If they really thought it would fail, they should allow it to go forward, with protests, and then use it as a bludgeon on the Democrats in the 2016 election. That is a more usual course of political strategy.
The Banks do the same thing. Regulate us, pass laws that we do not like, and we will crash again and take the system down. That is what comes of a period when the government sets a bad example and its light regard for the law begins to promote anarchy.
Let's be clear on this. No one in Washington is looking particularly good these days. None of them save a few and they face a formidable task, with harsh criticisms rather than support coming from those who would most likely be their supporters, but have given themselves over to lashing out in their frustration.
So let's see how this plays out, as it comes to a head next Tuesday. We will likely see the adults enforce some rational outcome after the players have played their histrionic tune on television for their base.
Have a pleasant evening.