This isn’t getting the play it deserves, but it sounds like Boehner has said that the markets will freak if there’s no deal in place by tonight:
Reports have emerged that House Speaker Boehner told his caucus that their team needs to “provide a positive signal on a plan to avert a U.S. default by tomorrow.”
That’s right, by the time markets in Asia open tomorrow. That’s right, Sunday in DC is pretty much Monday in Asia — and the roller coaster of financial shocks could start if Boehner doesn’t get his act together.
Instead of August 2nd being the debt default deadline, Boehner’s tactics and now his statement to his own troops have created market expectations that will either be met — or be disappointed, possibly creating a real sell-off in American treasuries.
Business Secretary Vince Cable has said something similar:
“The irony of the situation at the moment, with markets opening tomorrow morning, is that the biggest threat to the world financial system comes from a few right-wing nutters in the American congress rather than the eurozone.”