Congress finally did their job last night to prevent America from defaulting. Yes, the international community had to get involved, with a host of “shame on you, America” comments and China asking the world to be de-Americanized. The debacle in Washington was certainly not the best promotional piece for democracy.
But, that is minor. Take a look at the loss in consumer confidence:
This is major! After hitting a post-recession high in June, the horrors in the Capitol has really discouraged the American people. Of course, this affects consumer spending, which is about 70% of our GDP.
And, did I mention that another of the three credit-rating agency put us on “negative credit watch,” which is the last step before a credit downgrade?
Now, refresh my memory, what was this debacle all about?