Sunday, March 3, 2013

Wall Street: What Sequester?

Daily Beast’s Daniel Gross writes:  The sequester is here, but Wall Street couldn’t care less—by midafternoon the Dow was near a record.  On Wall Street, everything seems to be hunky-dory. As House Speaker John Boehner gruffly fled the White House and President Obama plaintively asked reporters for advice on how to deal with the loony House Republicans, the stock market recovered its early losses and drifted higher. By midafternoon, the Dow Jones Industrial Average, nearing 14,100, was in spitting distance of a record-setting close. (The high-water mark remains 14,164.53, on October 11, 2007.) Keep calm and rally on.

How can this be? After all, Washington and Wall Street have frequently been joined at the hip in recent years. From the TARP to the stimulus, from the August 2011 debt-ceiling debacle to the fiscal cliff, D.C. dysfunction has frequently caused market gyrations. In the past week, however, Wall Street has greeted the threat of automatic budget cuts with a shrug. Here’s why…

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