USA Today Roots for a Market Plunge in Response to Budget Negotiations

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Monday, 10 December 2012 06:14

I'm not kidding, it's right here. The piece expresses great disappointment that markets have not plummeted in response to the budget deadlock telling readers:

"Despite daily warnings about the effects of the fiscal cliff — tax increases and budget cuts that could cripple the economy — the markets seem supremely convinced that all will be fixed before the Dec. 31 deadline."

Of course it is bizarre that the article would connect the "Dec. 31 deadline" with the markets' calm since in fact almost nothing happens if this deadline is missed. The economic consequences of waiting until the first weeks in January to get a deal are virtually zero. The markets likely know this, even if no one has told the folks at USA Today.