Wall Street: speak on debt ceiling debacle

The short-term fix agreed by Congress pushes the debt-ceiling debate closer to mid-term elections, giving financial institutions an opportunity to influence a deal.
John Boehner, the Republican House speaker.
John Boehner, the Republican House speaker.

Everyone is breathing a sigh of relief that the Republican effort to extort political gains from President Obama by threatening the full faith and credit of the US has failed.

For example, Mohamed El-Erian, Pimco co-chief executive featured in this month’s edition of FinanceAsia magazine writes that the deal this week means the US can avoid recession, job losses and threats to its international standing.

It’s a view typical across the financial community worldwide.

This costly disaster has already clocked in at the billions of dollars of losses in the US, not to mention a humiliating no-show at important Asian regional meetings by Obama. It has led Fitch to...

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