We hear that the "markets" have to get over the "uncertainty" of a short term debt plan instead of one that moves beyond the "election." This is the latest cynical attempt to make the reality of the financial irresponsibilies of the White House go away until AFTER the next election. Let's look at the markets to see how stressed out they are compared to six weeks ago when the parties were not close to the latest deadline. The S & P 500 Index was at 1265.42 on June 15th. Yesterday the index finished at 1331.94.
Let's look at the treasury bond market and see how much interest rates on government bonds have changed over the last six weeks. On June 15th the ten year U.S. treasury note yield was 2.97%. Yesterday, after six weeks of news conferences with the president threatening default, economic catastrophe, and higher rates, the yield on the ten year treasury note yield was 2.95%.
Whatever is being said in Washington.......at least for now the markets are NOT listening.
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