My new Townhall.com column reviews last night’s Sean Hannity show, but lost in the various arguments from the various guests was the point about the outflows from money markets in response to the growing sense that Washington, D.C. is caught between two immovable forces.
To me this and other signals from Wall Street changes the debate away from the short term maneuvers of the president, Harry Reid and the Speaker to the long term damage that could be done via a repeat of the panic of ’08. The president’s irresponsibility is epic, but the signs that he has successfully scared the markets are everywhere, and the GOP has to keep momentum going towards a solution of the investments and retirements of many millions of Americans could take another massive hit.
To pass Boehner 2.0 is just to move to the next phase of the debate. To kill it now is to dance on the edge of a financial meltdown. There is no reason for default even if the debt ceiling is raised, but markets aren’t rational in the short term, and in this particular short-term with a president as inexperienced and incompetent as this one, the fears could easily overpower the facts.