Want To Really See The Economy Crash? Just Listen To The Tea Party
Yesterday's big sell off wasn't due to the recent down-grading of the U.S. credit rating. Sure it played a very minor part in it, but if you look at the markets yesterday there is something very interesting the sticks out. Investors still rushed to buy treasury bonds, which drove the 10 year interest rate below 2.4% yesterday. This is a huge rejection of the S&P downgrade, but why the big fall in the DOW and world markets?
While we live in scary times in terms of the economy, we are even more so in uncertain times. No one knows what the economy is going to look like tomorrow, in 6 months or even in five years. There are no plans coming out of Washington to turn our economy around and that has investors terrified. Paul Krugman sums up the current problem very nicely:
Truly, our public discourse has been entirely about problems we don’t have, at the expense of dealing with the problems we do have.
Instead of arguing over how to deal with our problems, both parties have decided this is the time to engage in ideological war. Neither party seems to have a common goal in sight and that is the real problem and the investors are seeing it.
So how can we make this problem a hundred times worse? Well let's ask Rep. Michael Burgess (R-TX). During a town hall yesterday, Burgess entertained an idea that is sure to not help fix our economy:
When one attendee suggested that the House push for impeachment proceedings against President Barack Obama to obstruct the president from pushing his agenda, Burgess was receptive.
"It needs to happen, and I agree with you it would tie things up," Burgess said. "No question about that."


