I have been following markets for the bulk of my life, and I have to say that watching the US dollar and Treasury markets fall into the same category of fodder as Greek debt and Euro debt is extremely upsetting. I do not know how we are going to come out of this crisis but the fact we’re in this position at all demonstrates a failure of leadership in Congress.
This in NOT Obama’s fault, nor is it the fault of the Senate. This impasse falls squarely on the shoulders of the US House of Representatives and their inability to pass responsible legislation to manage the finances of this country. It is the House of Representative which is responsible for generating spending bills, a duty which they have abdicated for the bulk of my adult life.
I would hope responsible members of the House would step up and make deals which rein in the abuses of prior Congresses (and Presidents), however I am not holding my breath. I am expecting House incompetence to end in default.