Traders are increasingly less likely to respond to repeated ultimatums from Republicans.
Your feedback is important to us!
We invite all our readers to share with us their views and comments about this article.
Disclaimer: Comments submitted by third parties on this site are the sole responsibility of the individual(s) whose content is submitted. The Daily Star accepts no responsibility for the content of comment(s), including, without limitation, any error, omission or inaccuracy therein. Please note that your email address will NOT appear on the site.
Alert: If you are facing problems with posting comments, please note that you must verify your email with Disqus prior to posting a comment. follow this link to make sure your account meets the requirements. (http://bit.ly/vDisqus)
Wall Street trembled when Republicans first began threatening to force the United States into default by not raising the federal debt limit, but after four years of fiscal standoffs, the threat looks increasingly like a bluff and the markets are calling it.A Reuters analysis, tracking short-term Treasury yields, credit default swaps and market volatility data, showed traders are increasingly less likely to respond to repeated ultimatums from Republicans in the U.S. Congress about the debt limit.That has silenced the issue, as Boehner hoped, during the 2016 presidential and congressional election campaigns.Indeed, some Republican fiscal hawks are itching for another chance to demand cuts in federal spending as a condition for raising the debt limit, saying Boehner sold them out.In August 2011, congressional Republicans demanded that the projected federal budget deficit be cut by $4 trillion over 10 years or they would not vote to raise the debt limit.Even the few remaining moderate Republicans said there will always be threats over the debt limit.
FOLLOW THIS ARTICLE