I see things similarly to Jonathan Bernstein. We’re all waiting around to find out which option the Tea Party Republicans want to use to save some face before they surrender. The Senate is throwing different things out there to see if they can provide enough balm to soothe the nutters’ injured pride. On the other hand, I look at what Judd Gregg has to say, and I wonder if he’s right.
Former Senator Judd Gregg (R-NH) says Social Security checks will need to be halted before House Republicans will agree to a deal to raise the debt limit…
…”My gut tells me that we’ll need a weekend of drama — maybe a weekend of the government not paying its bills — politicians need drama to make something happen. As soon as social security checks don’t go out, the politics will change. I suspect it’ll take artificial drama to get closure past the House.”
“Boehner understands that a shutdown is bad for his caucus and that there’s something viable short of a shutdown but right now… it’s a 50-50 chance that we go into a few days of disruption.”Gregg said lawmakers don’t really care about the nation’s credit rating:
“Policy-makers only worry about a ratings downgrade at the margins. They don’t really care.
Yeah. We had a couple of shutdowns in 1995. Seems like we’re about due for another one.
Is it time to short some stocks?
