You know what worries me about today's stock market selloff?
It will put the fear of god...
In Washington to get another deal on...and done.
Don't get me wrong.
I think these guys should get serious about getting a debt deal done.
But not any debt deal to respond to any market tantrum.
Because what's done in haste to calm investors, can quickly be un-done by those same investors.
Especially when they discover in all that haste...just more waste.
Does anyone remember tarp back in the last president's administration?
Dow down 777
Congress nixes the first bank rescue attempt and the Dow promptly tanks nearly 800 points.
Frantically, congress gives it another shot, and this time passes the financial bailout...but within months, the Dow is off more than 4,000 points.
Proving in the end "nothing" calms the savage beast.
Even when he's not behaving savagely.
Just like little over a month ago, when talk of a European debt deal got markets worldwide jumping...until true to form, they were back careening when they discovered that deal really "wasn't" worth celebrating.
Such is the nature of giving into tantrums.
Just ask any parent, you're guaranteed more tantrums.
It's the nature of the beast to be beastly.
So better for the parent to sometimes be even beastlier.
Denying the immediate fix...to apply a more meaningful lesson.
But we are so eager to keep the calm...
That we eagerly keep surrendering any real discipline.
So best not to respond to markets that will get upset if you have no deal.
Remember, they'll be even more upset if they get the wrong deal.
Ask any kid.
Longer-term, kids respect parents who did the right thing, even though it didn't seem obvious at the time.
Just like longer-term, investors respect politicians who finally do the right thing, even though those same politicians have rarely done it, any of the time.