Drum deems Wall Street a shutdown winner:
They didn’t panic because they figured Congress would do the right thing at the last second, just like always. They were right.
Sarah Binder has mixed feelings about this:
[M]arkets have wised up to Congress’s brinkmanship habits. Anticipating that Congress would inevitably raise the debt ceiling, markets showed only a tepid reaction this week to the threat of default. To be sure, we saw nervousness in bond markets as the Treasury came close to hitting its borrowing ceiling. Still, we are a long way from TARP I: The defeat of the first TARP bill in September 2008 precipitated a market free-fall that forced the parties to the table. With markets a bit more attuned to how polarized parties legislate, we can no longer count on adverse market reactions to discipline recalcitrant leaders into coming to the table. This may prove a worrisome development in future episodes of brinkmanship when the blame game delivers a less decisive blow to one party or the other.