Thanks, idiots, for the carnage.
By “idiots,” I mean those members of the US Government who are unwilling to compromise because of some quasi-religious convictions about taxation and the role of government. I mean those members of the US Government who are using the debt ceiling to create a crisis, thereby scaring the bejeezes out of little old ladies.
Officially, the US debt ceiling “crisis” (which is completely artificial and unnecessary in the first place) is supposed to occur sometime next week. But, it’s already happening.
Little old ladies, sophisticated investors – everyone – are now getting out of US investments. They are selling their US mutual funds, closing their US bank accounts, and selling their US stocks. Today, I had millions of dollars’ worth of accounts cross my desk saying, “Sell all my US holdings and buy Canadian.” This selloff - which has already cost the country billions of dollars - will continue until the matter is resolved.
Of course, not everyone is upset about the situation. Citizen’s militia groups are apparently ecstatic about what they feel is the increased likelihood of finding practical use for their assault rifles and body armor.
Interestingly, tea party members are now calling for the resignation of John Boehner, saying that he is part of the “old guard” and not revolutionary enough.
It is likely that Congress will reach an agreement at the last minute, after scoring enough political points to satisfy their most maniacal constituents. Even so, many investors are not confident enough of this positive outcome to leave their life savings to the whims of fanatics.
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See also:
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“Some men just want to watch the world burn.”
Alfred the Butler, in the movie, The Dark Knight
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