Working Economics: How will the market react to a supercommittee “failure?”
Posted November 15, 2011 at 3:25 pm by John Irons
As the deadline looms for the supercommittee to report back to Congress, some have raised the specter that “failure” would lead to a collapse in financial markets. For example, Massachusetts Sen. John Kerry has expressed concerns that a failure to reach an agreement would send a dangerous signal to markets, and the Committee for a Responsible Federal Budget has said that a “go big” agreement is needed to “reassure markets about our ability to repay our creditors.”
These concerns are misplaced.
Blog