Wall Street and the Tea Party…what a relationship. Wall Street loves that the Tea Party wants to keep its taxes low and cut up all that troublesome regulation that makes them play fair, but then the Tea Party runs around doing shit like opposing TARP, holding the nation’s credit rating hostage and threatening a new recession, and choking off that government spigot that keeps the economy limping along (as opposed to crawling along, or rotting in a ditch along). What to do?
Ladies and gentlemen, some of you know a bit about dysfunctional, torrid love affairs where one day it’s epic bed parties and the next it’s dodging cutlery. *faraway stare*
So anyway, big surprise, Wall Street is now shitting its pants that spending is going to dip.
For months they sat around cheering on the tea partiers and declaring solemnly that the federal budget was just like a household budget and we needed “real action” on the debt in order to build confidence in the economy. Then, suddenly, when they got it, they realized that what they really wanted wasn’t dumb slogans but actual policies that would help spur the recovery. And that means looser monetary policy and fiscal stimulus.
So which is it? Has Wall Street really been sitting idly by during the whole debt ceiling debacle and has only now realized what it really means? Can they really be so steeped in the Fox News fantasyland that it never occurred to them until now that cutting federal spending during an economic downturn wasn’t really a great idea? Seriously?