Watching CNBC. Bove says that because the stock market isn’t in a major sell-off the pols can’t get away with the kind of bad deal (my interpretation) that they want. He warns investors: “The only good strategy at the moment is to get out of the way. The politicians will get the panic they seek.”
CNBC spins this as: lawmakers need a reason to act to avoid gridlock. What Bove is actually saying is that there is a conflict of interest between the pols, particularly the Democrats, who want to bust the sequester and force the full implementation of Obamacare as scheduled, and American taxpayers. This is why Obama says, “this time I think Wall Street should be concerned”. Nice stock market you’ve got here, pity if something were to happen to it.
It appears that Obama is trying to do with the markets the same thing that he did with the national parks: make the government shutdown costly for ordinary Americans, whom he hopes will then find new cause to support him. The media will keep trying to reframe this crass partisan shakedown as Obama working to prevent disaster, but what he’s really doing is transparent to anyone who pays attention.