Reports have emerged that House Speaker Boehner told his caucus that their team needs to "provide a positive signal on a plan to avert a U.S. default by tomorrow."
That's right, by the time markets in Asia open tomorrow. That's right, Sunday in DC is pretty much Monday in Asia -- and the roller coaster of financial shocks could start if Boehner doesn't get his act together.
Instead of August 2nd being the debt default deadline, Boehner's tactics and now his statement to his own troops have created market expectations that will either be met -- or be disappointed, possibly creating a real sell-off in American treasuries.
Perhaps he should have thought about that before he stormed off. In John Boehner's verbal duel with Obama yesterday, he said that he had taken the same oath of office as the President and had the same responsibilities as the President. But the powder keg he is flirting with -- and I believe it is all misguided theater designed to keep the GOP on the evening, morning and mid-day news -- could blow up because his management of his own caucus seems amateurish and weak.
If Boehner was worried at any point about sending "positive market signals", he might have started a lot sooner than this weekend.
Given that I could be wrong about this being well-orchestrated kabuki and that it all really could blow up, Boehner would demonstrate he had some political statecraft if he leaves the fuse with Eric Cantor when the economy goes off the rails.
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Source: Huffington
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