As an update to our comment last week on the three 'F's of US fiscal-policy-making [2]; it seems we are following the path of last year's debt-ceiling debacle ever more closely. Once again - do we need a 20% drop in US equities to spur the politicians into action? As they try and wedge a square peg of higher taxes into a round peg or spending cuts, we suspect so...
[3]
Chart: Bloomberg