Lots of people seem to be blowing off media concerns about the Debt Ceiling Limit issue, figuring a deal is certain. Sen Corker this morning on CNBC was positively DISMAL. But, his concern seemed to be more over the Republicans losing the moral high ground to Pres Obama, than to the likelihood of never reaching a deal. He kept trying to get the "reporters" to agree to force Sens Durbin, Reid, and the Prez to be specific on the $3T proposed cuts they will claim this morning but all the reporters would do was hammer at him about Republican intransigence. He noted the lack of real cuts is the reason the Republicans are not agreeing to whatever the Dems are claiming they are proposiing. He said talk of $2T, $3T in "cuts" is not founded on real cuts and nothing is being proposed to actually change the unsustainable trajectory. His normal dour manner was worse and grew worse as his point was lost on the "reporters".
The Democrats appear to be successful in using the media to define the debate for the public in the simple terms of "Republicans like rich, Democrats like little people". This should cause the Republicans to cave again, shouldn't it? Maybe that is what the market anticipates.
