Global stockmarkets are about to spend a couple of days feeding off one another in an ever descending cycle of economic violence - 21st Century style.
The failure of the US political system to reach agreement today led immediately to a sell-off in US markets. The failure itself, whilst a leadership blunder tarnishing the reputations of all political parties represented distinct philosophical differences.
Democrats favour a maximalist approach to protecting savings of individual people and capping executive pay, whilst Republicans see minimal government involvement in markets as being crucial to American prosperity.
It is a difficult square to circle, not helped by the Presidential elections - a number of politicians are up for re-election and therefore focused on their own futures. Congress will reconvene on Thursday, and whilst a new plan could be brokered in the next 48 hours it cannot be brought into force until then.
The consequence is two days of economic turmoil with no political solution in sight. Time to raise, hold or call ?
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Election 2008, US Election 2008, US economy, World economy
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