Liberals disappointed in market reaction to Republican stand on debt

LA Times:

Where is a good old-fashioned market crash when you really need one?

Wall Street could have ended this pathetic debt-ceiling drama in a hurry this week, if only investors had been willing to vote with their dollars.

Bail out of stocks, drive Treasury bond interest rates to the moon and push gold up to $2,000 an ounce. That would have sent the pols a message to get their act together.

Instead, we got a slow-motion stock sell-off that clearly didn't make the point with Congress.

And instead of fleeing Treasury bonds as Washington barrels toward potential default, the world was piling back into U.S. long-term debt by the end of the week, pushing rates down.

How's this for showing Congress who's boss: The 10-year Treasury note yield, a benchmark for many other interest rates, ended Friday at 2.80%, down from 2.95% on Thursday and the lowest since November.

Yeah, that'll strike fear in the hallways of Capitol Hill.

...

Actually it was the administration and their liberal supporters who had been predicting a panic in the markets. So far, they have clearly been wrong. Investors seem to be siding with the Republicans who are trying to control spending. BTW, I do not think the writer was doing so with his tongue in his cheek. He seems genuinely disappointed in the lack of a market dive.