The Super Committee Punts and Leaves the Field

by Marilou Long on November 22, 2011

in Credit Crisis,Debt,Fiscal Policy

This Wall Street Journal ” is a good summary of the failure of Congress to come to any agreement on

the best way to reduce the deficit. Their title is probably a better metaphor than mine for this post given the tent cities coming down in the various Occupy protests. From the article:

In failing to reach an agreement, members of the supercommittee seemed immune

to mounting public disapproval of Congress”s record, and they gambled that
fallout on Wall Street and world financial markets wouldn”t be significant or
enduring. Washington has now likely punted on addressing the nation”s festering
fiscal problems until after next year”s elections.

For financial markets, the outcome was further confirmation of policy makers”
unwillingness to tackle the deficit and contributed to a drop of 248.85 points,
or 2.1%, in the Dow Jones Industrial Average, which moved back into the red for
2011.”

I am very cynical about the leadership in Washington, but John Podoretz in this New York Post article out does me in cynicism when he states:

“The supercommittee triumphed in accomplishing what it was truly intended to accomplish.

It was created to kick the can down the road. The only thing that mattered was that it come into existence, and it did. Its invention made increases in the debt ceiling possible through the end of President Obama’s term.”

Read more: http://www.nypost.com/p/news/local/they_didn_fail_they_succeeded_in_FnLojzFlEYd9CACM38CWDI#ixzz1eRmVhM7q

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