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Saturday, July 30, 2011

Washington Is Annoyed at Wall Street's Failure to Panic

Obama and the MSM has been screaming that the end of the financial world is here and blaming the Tea Party. I have told people who ask that there will not be a default. And the markets have not paniced. After the TARP debacle people are a lot more cynical.

...lots of people in Washington, D.C. expected that this would be a week marked by panic in the markets. Stocks would tank. Bonds would get clobbered. The dollar would do something dramatic. And all of this would help convince reluctant lawmakers that they had to reach a compromise on the debt ceiling.

"We were following the script from 2008. When the market collapsed after TARP failed, that spooked everyone enough to get them to fall in line. We thought the same thing would happen this week," he said.

Instead, the market has just been on a quiet, non-panicked slide.

Stocks have sold off by a couple of percentage points, but nothing that indicates a real fear trade in the works.

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