Fear, disbelief, and disgust were some of key sentiments expressed by the public and investors last week. Early in the week, the selling reached panic levels such as those last seen in December of 2012. As we ended the week, there were hopes that the debt ceiling and budget compromise would be reached soon, but at what cost?
By the end of the week, the Republicans realized that their insistence on abolishing the healthcare plan was not working, but as is often the case, there has been quite a bit of damage and unneeded suffering in the interim. It was particularly offensive to many that Congress was still getting paid.
It seems like the Tea Party faction is bound and determined to drive out those good Republicans like Bill Bennett and Richard Lugar who did not get their views of the global economy from a crackerjack box. I hope that if other veteran Republican senators are driven out by the Tea Party in the primaries that they will run as Independents as they are an asset to our country.
Using financial market criteria, the Republican Party has been in a bear market since their favorable rating peaked at 61 in 2002. The Gallup chart shows that it has dropped 15% just this year and has violated support at line a. It is now even below the reading of 31% favorable from 1999.
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