We learn today that GDP growth was far weaker than believed in Q1 and Q2 – 0.4 percent last quarter, 1.3 percent this quarter. We watch the market open and drop 100 points.
The first piece of news mitigates the second for GOP debt deal holdouts. Erick Erickson, the RedState editor who’s turne dout to be the Tom Paine of the GOP’s line-holding effort, sums it up in two tweets.
Hahaha. GDP is worse than expected so everyone is buying the treasuries the Democrats say we’ll default on paying by Monday. LOL.
GDP comes in lower than expected. Markets tank. Democratic spin is “it’s because of uncertainty in what the GOP will do.” Hahahaha.
Right: Some of the sell-off may be due to the rotten GDP report (which looks like the rotten reports from other non-Canadian Western democracies). So a Republican wondering how to vote isn’t going to be spooked yet. Ironically, the market-panic-will-convince-them! theory of Republican persuasian is weak because Republicans have been expecting it. Darrell Issa went out of his way to say that the debt deal wasn’t like TARP, because some members were comparing the demands made on them in July 2011 to the demands made on them in September 2008, and pining for another chance to ignore the experts and vote “no.”
