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The Morning After

10/17/2013

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:

Chart of the Day
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?

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