Good News: US Reached an Agreement. Bad News: US Politics Lost Credibility

The good news — and it is very good news — is that Congress seems to have finally struck a deal that would reopen the government and dodge a debt default. In doing so, lawmakers have avoided (at least for now) a crisis of their own creation that would have tipped the country into recession, caused substantial job losses, and further eroded America’s global standing — all of which would have also undermined national security.

Yet the good news is not the result of a visionary solution that reconciles, even in a limited fashion, material differences of views on the size and scope of government; nor does it fundamentally realign political incentives in a constructive manner.

What emerged from Congress on Wednesday speaks to stop-gap measures born of exhaustion and political miscalculations, and prompted by national (and global) outrage.

via CNBC

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza