You actually think there's fiscal responsibility in our government, particularly with Democrats? Were you born yesterday?
Some people might blame the Tea Party for this 'crisis' but its the voters who have had enough of the wasteful spending and elected them to at least begin to put a dent in the debt. Lets face it 40% of each tax dollar goes to pay just the interest on the loans. Obama had enough time to figure out a deal. He will go down as the worst president since Jimmy Carter for his lack of leadership. I think if we lose the AAA rating the stock market is going to fall hard. I'm not so worried about the Aug 2 debt ceiling deadline.
illiterate is perhaps not the right word here, but I do understand what you're saying, and I've had similar thoughts. It seems to me that what is happening, and none too slowly, is that our U.S. congress is beginning to be dominated by those perhaps better suited to managing fried chicken fast food establishments and car dealerships. These people are obviously not very erudite and don't have a very good grasp of some rather complex issues. And sadly, we now see some candidates for president that fit the same mold. And to address the OP's question: No, the market will not rally if the U.S. defaults.
The Tea Party folks are in effect saying, "We are so upset by the direction of our government that we would rather destroy the country than keep going down the same path." There are cooler, more astute heads that would push the country in the right direction to correct its excesses and mistakes and get it back on a path leading to prosperity, but they are now in the minority. I am referring to philosophies, not political parties.
+1 Even if you're not a Keynesian purist you have to admit that slamming on the breaks after 3 decades of flooring it will not end well. The current deficit / public debt is nothing compared to the unfunded liabilities and private debt that has yet to be liquidated.
That's the perfect analogy! That same analogy occurred to me after I posted. You're doing 80 mi/hr on the freeway and you slam your car into reverse without first applying the brakes! As you say, that will not end well.
You have no idea of how the US federal government even works. All spending bills, financial legislation originate in the House... which is increasingly being overrun by ideological idiots who are, at this point, willing to destroy the country - in order to save it. Obama can do NOTHING... if the House/Congress doesn't send him a bill. Jimmy Carter, blah, blah. Who gives a rat's. Obama has had a pretty good record of leadership, given what he has to deal with. He's been able to get a surprising amount done - that he ran on. People who claim "he's a socialist" A.) Don't even know what socialism is and B.) Even if he was... he ran on it. And won.
Thank you for the education lol. Funny how any opinion expressed here on this forum gets chewed up. Those 'ideological idiots' (tea party) in congress were elected by the people. The people say pay bills and stop the wreckless spending. Thats how government is supposed to work. Now they are in a position to demand cuts. Obama and leadership should not be used in the same sentence and yes, he IS a socialist and an apologist for being an American. So lets leave it, I'm not a teenager and am not here to impress anyone.
Well. Why don't those idiots get off their A$$, put a bill together that cuts government spending by 50%, and get it to the president. Where is the bill? Congress can pass a bill like that in a day. And if they did, then there would be no need to pass a debt ceiling increase. So why aren't they doing it?