Tuesday, June 07, 2011

More Battle Rattle

Stan Collender says Wall Street is already reacting negatively to the uncertainty of the debt limit vote. He also touches on theme and idea I already mentioned. To wit, that Dems and the administration should rattle the markets to bolster their negotiating position.



Try to imagine the virtually immediate impact on the stock price of government contractors if the administration announces on Aug. 2 that money owed to those companies will be paid after 120 days instead of 30, and you start to get a sense of how much the White House rather than Congressional Republicans are in control of the situation.

My point is, why should the administration wait till August 2nd to make such an announcement. Why not do it now, or at least mid July, to increase their leverage and put the heat on Republicans for playing politics with the debt vote and wreaking havoc with the market?

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