House Republicans are trying to reclaim their mantle as thrifty spenders after blowing that reputation during their last stint in charge…Now they grow a pair… After looking like we were down to the vagaries of legislative language at mid-afternoon Thursday, the wheels fell off the bailout bus late yesterday. S&P futures are under pressure this morning which should remind lawmakers, in real time, how important this package is. The largest bank failure in history overnight should also help sharpen political focus.
Risk aversion is run amok, knocking the stuffing out of EUR/JPY, oil and other “risky” assets. GDP figures will be a side show against this backdrop as the market focuses on Washington and credit spreads which remain at record wides.
