The politicians from the president on down have been trying to scare the American people into accepting more debt and higher spending by crying wolf about a stock market crash. On the Sunday news shows the pundits and politicians
have been breathlessly awaiting the openings of the Asian markets and looking for hints about what will happen here.
The fact is there will be no market crash if a debt/spending agreement is not reached. If the U.S. debt is downgraded a bit, the world will not end. The market has seen this disaster coming weeks ago. It doesn’t think it will make a
lot of difference. If it did, the sell off would have occurred long ago.
If there is a sell off it will be short term as nervous nellies exit the market. The smart money will stand firm and possibly even jump in when it sees a buying opportunity.
The market is a lot smarter than the Washington politicians and the talking heads.