Yesterday, I commented on a Reuters article that said that the GOP was rushing to get its new plan to raise the debt ceiling before 4 PM since that is when markets in Asia opened. The story was ridiculous, and it was clearly written by someone who was either a complete financial illiterate or someone who was intentionally pushing a false story. This morning, there is another article from a different reporter at Reuters talking about how the markets are fearful about what will happen and this is causing the futures to tank. As I write this at 8:55 am Eastern time, the S&P futures are down 10. This is certainly a downward movement, but it is hardly a sign of panic. The decline is less than 1%. It is not unlike countless other futures trades that happen all throughout the year. Indeed, there are no big movements in the interest rates for treasuries, and it is here that the biggest move would be expected if the markets were "filled with fear". So, once again, Reuters is reporting a story that does not really exist. I am sure that the White House, which has been trying to cause panic for a while, will be pleased, but the reality is something quite different. We may get to the day that the markets panic. We are not there yet according to the trading.
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