For all their knee-jerk obsequiousness to the interests of the rich, teabaggers themselves generally don’t understand the financial sector and how economies actually function. Now they’re all fixated on cutting government spending, and some of them seriously think not raising the debt ceiling would be a good thing. [Update: Ron Paul, for example. Note that one of his commenters seems to think that if the debt ceiling is not raised the U.S. would be freed from debt.]
Right now Washington seems to be locked in a game of chicken. Republicans are threatening to not pass a debt ceiling raise unless they get more spending concessions from the Democrats. The White House so far is holding tough, apparently in the belief that there are enough not-crazy Republicans that the debt ceiling will be raised.
As the almost inevitable debt default is perhaps only weeks away, Wall Street types are finally becoming nervous. They should have known that supporting a bunch of not-too-bright, ignorant Tea Party members to Congress was not going to work out well. I tried to warn them. Following is an article I published last year warning people just how crazy these people are and some references to the debt limit/default issue. BB
What follows is some commentary he wrote last year about how those crazy people are about to trigger “the biggest debt crisis we have seen since Alexander Hamilton was Treasury secretary.”