We should allow market factors play out over time. Rather than trying to manipulate ourselves out of this mess. The problem I had with the 2Trillion in cuts. Is that it didn't solve deficit problems, and the cut in spending was going to lead to a contraction of GDP growth.
With 4 Trillion in cuts we would have at least solved the debt issues, even if it meant a short-term contraction in GDP growth, and an increase in the unemployment rate.
Also 4 Trillion in cuts would have given us room, for a reduction in the tax rate. All we have done is walk around in circles. We have not solved any of our problems, and worse yet. We're going to contract our GDP, without a AAA credit rating, and without solving our fiscal problems. The chances of corporate, and income tax rates dropping have gone out the window.
So Mrs. markets sells off, and that's all she wrote.