DC Crisis Averted

I don’t usually like to call the result of a game before it’s over.  But in this case I’m confident saying that the deal reached in the Senate today, which does nothing other than re-open the government through 1/15/14 and extend the debt limit to around 2/7/14, is a done deal.  The Senate is expected to vote around 6pm tonight (80+ will vote yes) and the House will vote a few hours later (I’d guess at least 65% will vote yes).  The President will likely sign the bill tonight, reopening the government by morning.

The crisis that never really was a crisis has been averted, miraculously (HA!), one day from the reported deadline.  Fear-mongering, yet again, served no purpose other than ratings and scaring people into making terrible financial decisions.  As I’ve been saying all along, there was a 0% chance of default or any permanent damage to the economy that would result from it.  Minor, temporary damage has been done though shaking the confidence of businesses and consumers, but we’ll recover from that.  However, nothing has been done to pass a budget and make the country’s long-term fiscal situation sustainable.  Over the next 3 months, which will include time off for holidays, Congress has to make some progress, or we’ll be right back in the same situation again with another “crisis” to start 2014.  We’ll see what they come up with.

For now, back to business as usual with the hopes that the last few days don’t become the new business as usual.

***Update, 11pm eastern time***

Senate passed bill 81-19 (I predicted 80+).  House passed bill 285-144 (66.4% vs. my 65%+ prediction).  Obama to sign momentarily.  Government will be open in the morning.  Debt limit extended to 2/7.  25 hours to spare from their 10/17 deadline.  Congress is getting better at this!

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