Stocks were weighed down again on Wednesday by worries that the United States could default on its debt or see its credit rating cut as lawmakers in the world’s largest economy appeared no nearer to an agreement on raising the borrowing limit.
In morning trading, the Dow Jones industrial average shed 140.47 points, or 1.12 percent, to 12,360.83. The broader Standard & Poor’s 500-stock index lost 20.27 points, or 1.52 percent, to 1,311.67, and the technology-stock-heavy Nasdaq composite index lost 62.47 points, or 2.20 percent, to 2,777.49.
The United States has one week to reach a deal to increase its $14.3 trillion debt limit or face not being able to pay all of its bills.
Republican leaders had promised a vote on Wednesday in the House of Representatives on a plan to increase the debt limit and avoid America’s first-ever default. But the vote was put off until at least Thursday.
Though most investors think a last-minute deal to raise the debt limit will eventually emerge, the difficulty of reaching an agreement may leave a lasting impression on investor sentiment, some traders fear. That was evident in the price of gold, widely used as a haven investment; it reached a nominal record high above $1,625 an ounce on Wednesday.
At this point, I think most in the market incorrectly believe there will be a deal. They simply still do not understand how insane the people they put in office are. The closer we get to the default, the more excited these clowns will get- you saw their barely concealed erections after watching The Town last night. They like this. They think of themselves as revolutionaries. This is “their moment!” This is their time! This notion that some serious people can reel in the crazy is farcical. These guys think of themselves as the vanguard of the proletariat. You’ll see! When the default happens, no matter what happens, they will think of it as a win. Out of chaos and disruption can come the pure conservatism, the real conservatism, the true conservatism that Rush Limbaugh and Jim DeMint and Grover Norquist have been promising them. And when it all comes crashing down, well, they will just claim that Obama and the Democrats and some intransigent Senate Republicans didn’t let them be pure enough.
For fuck’s sake, read this stuff.