- U.S. Congress threatens to not make good on U.S. debt
- S&P downgrades U.S. debt
- Market actors respond by panicking and buying more U.S. debt
These three phrases speak volumes about our current political and economic environment, not to mention the role and relevance of institutions like legislatures, central banks, and credit rating agencies in shaping market outcomes.
Disturbing? Yes. Inconsistent? Not in the least.
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