July 23, 2011
That’s what the NYT told readers today. It quoted House Minority Whip Steny Hoyer as saying:
“The markets have made clear that a short-term extension is not sufficient and would result in very serious consequences.” Actually the markets make their sentiments known through movements in interest rates. And these movements show no evidence whatsoever that the markets would be concerned about a short-term extension of the debt ceiling.
If Mr. Hoyer thinks that the “markets have made clear” that a short-term extension would be unacceptable then he must have some other channel through which he gets information from markets. Reporters should investigate how Mr. Hoyer thinks he comes to know the markets’ sentiments.
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