Republicans Fool Markets With Debt Ceiling "Deal"

Reporting on Politics and Policy.
Oct. 10 2013 10:35 AM

Republicans Fool Markets With Debt Ceiling "Deal"

The Wall Street Journal scooped the details of what John Boehner would sell to his conference at a 10 a.m. meeting: a six-week extension of the debt limit (right up to Thanksgiving!) with "no policy conditions."* The Dow Jones immediately spiked by 200 points, interpreted as a response to this "breakthrough."

But how much of a breakthrough is it? The politics of the CR and the debt limit have gotten tangled; no one's knocking investors if they haven't followed every bend and turn. The House GOP still wants more from the CR than the administration will agree to, but outside groups like Heritage Action have signed off on the idea of a "clean" debt limit increase for a few weeks. Doing so would, like the "mini-CRs," remove one of the ongoing outrages that hurts the GOP. The theory: This will give Republicans and Democrats the time and space to negotiate a long-term spending deal, something that they couldn't do in 2011, when there was far more political pressure on the president's party.


Hey, it might work. But the markets are currently thrilled by a deal that 1) has yet to be agreed to by the House of Representatives, 2) may merely kick the debt limit crisis back to Thanksgiving, and 3) at the absolute best presages a spending deal Wall Street can only guess the details of.

*Correction, Oct. 10, 2013: This post originally misstated the length of the proposed debt limit extension as six months.

David Weigel is a reporter for Bloomberg Politics



Talking White

Black people’s disdain for “proper English” and academic achievement is a myth.

Hong Kong’s Protesters Are Ridiculously Polite. That’s What Scares Beijing So Much.

The One Fact About Ebola That Should Calm You: It Spreads Slowly

Operation Backbone

How White Boy Rick, a legendary Detroit cocaine dealer, helped the FBI uncover brazen police corruption.

A Jaw-Dropping Political Ad Aimed at Young Women, Apparently

The XX Factor
Oct. 1 2014 4:05 PM Today in GOP Outreach to Women: You Broads Like Wedding Dresses, Right?

How Even an Old Hipster Can Age Gracefully

On their new albums, Leonard Cohen, Robert Plant, and Loudon Wainwright III show three ways.

How Tattoo Parlors Became the Barber Shops of Hipster Neighborhoods

This Gargantuan Wind Farm in Wyoming Would Be the Hoover Dam of the 21st Century

Oct. 1 2014 8:34 AM This Gargantuan Wind Farm in Wyoming Would Be the Hoover Dam of the 21st Century To undertake a massively ambitious energy project, you don’t need the government anymore.
  News & Politics
The World
Oct. 1 2014 12:20 PM Don’t Expect Hong Kong’s Protests to Spread to the Mainland
Oct. 1 2014 2:16 PM Wall Street Tackles Chat Services, Shies Away From Diversity Issues 
Oct. 1 2014 6:02 PM Facebook Relaxes Its “Real Name” Policy; Drag Queens Celebrate
  Double X
The XX Factor
Oct. 1 2014 5:11 PM Celebrity Feminist Identification Has Reached Peak Meaninglessness
  Slate Plus
Behind the Scenes
Oct. 1 2014 3:24 PM Revelry (and Business) at Mohonk Photos and highlights from Slate’s annual retreat.
Brow Beat
Oct. 1 2014 9:39 PM Tom Cruise Dies Over and Over Again in This Edge of Tomorrow Supercut
Future Tense
Oct. 1 2014 6:59 PM EU’s Next Digital Commissioner Thinks Keeping Nude Celeb Photos in the Cloud Is “Stupid”
  Health & Science
Oct. 1 2014 4:03 PM Does the Earth Really Have a “Hum”? Yes, but probably not the one you’re thinking.
Sports Nut
Oct. 1 2014 5:19 PM Bunt-a-Palooza! How bad was the Kansas City Royals’ bunt-all-the-time strategy in the American League wild-card game?