The debt-ceiling debacle: how much economic damage did it do?

David Lightman for McClatchy Newspapers:

Republican pollster Bill McInturff found that public disgust with the summer debt-ceiling debacle had eroded confidence in the economy and the federal government profoundly, on a scale similar to the 9/11 terrorist attacks and Hurricane Katrina. That, McInturff warned in an analysis earlier this month, could lead to “unstable and unpredictable political outcomes” in next year’s elections.

Bill McBride on the terrific Calculated Risk website:

. . . It usually takes 2 to 4 months to bounce back from an event driven decline in confidence, so maybe next month …

If that’s so, then the dismal economic statistics we’ve been seeing in the past few weeks are not necessarily inconsistent with a return to positive (though still slow) growth before year’s end.


About Guy N. Texas

Guy N. Texas is the pen name of a lawyer living in Dallas, who is now a liberal. He was once conservative, but this word has so morphed in meaning that he can no longer call himself that in good conscience. Guy has no political aspirations. He speaks only for himself.
This entry was posted in Economic policy, Economics, Finance, News, Politics. Bookmark the permalink.

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