Financial markets remain fixated on the question of whether or not America’s political classes will impose an entirely avoidable disaster on themselves, their fellow US citizens and, by extension, the rest of the world. While there are signs of rapprochement this weekend, Congress may yet fail to agree a new “debt-ceiling” limit. That could spark a world-wide market meltdown, so upending the fragile global recovery.
Those on the Democrat side of the aisle feel they’re on solid ground. The party controls both the White House and the Senate. President Obama’s sweeping healthcare reforms have been extensively debated, passed into law and ratified. And last year he was re-elected, no less, having campaigned on a ticket featuring this policy.