None of the fundamental problems that caused the crisis of 2008 have been fixed. The world financial system is still one gigantic mountain of debt, leverage and risk.
And in Washington DC, we can expect no change, and therefore we have no hope of riding out the coming financial tsunami that will wash over our shores without huge damage we can't afford to fix. The time bomb is ticking, yet when the Congress comes back after Labor Day I predict nothing useful will happen for the rest of the calendar year. President Obama will outline his "latest ideas" (CBO: "we can't score a speech") for turning our economy around: more of lame same. Meanwhile, the Executive Branch regulators continue to pour toxic waste into the business environment. (Interesting that some of the worst regulatory toxic waste is coming from Obama's Environmental Protection Agency. I guess EPA only cares about the trees.)
And if it gets bad enough, I expect things will get nasty indeed.
I’ll tell you what Congress, or should I say The “Super Congress” is going to do.
They are going to whack defense to kick the can down the road.