They SHOULD worry. Those newbies in the House hold all the cards in this particular hand; they shouldn't give them up for love nor money. The financial markets have needed correction for a long time. They've been propped up by funny-munny from the governments. The prospect of such a correction is 1) a normal thing, and 2) obama's problem, if anyone's.
The House must get their big budget cuts and NO tax increase. The tax code needs to be dealt with separately.
Budget Cuts that go out as far as 10 years. Get real. We have been down that road too many times. Reagan, Bush1, Bush2, CR Deal.
No congress is bound by “future cuts”.
We have tried it your way... for decades and it hasn’t worked.
I would take a short-term deal, with REAL Spending cuts.
A package of spending cuts w commensurate cuts in spending is the place to start, but some revenues will be tacked on by the Senate I via tax reform or other trigger - once spending cuts have been implemented for FY 12.
Boehner has now usurped the President of the US as the adult in the room; he has to prove the GOP can govern.
Bottom line: BO doesn’t get it, but Senate Dems are waking up that their spending spigot is over, and that their Keynesian nonsense is headed to the ash heap of history.
BO screwed up badly, put himself into a lose-lose. If he obtains a credible deal, he loses his base. If he secures a phony deal, our credit is downgraded and he owns the economic contraction.
Thank God that Standard and Poors came thru this week for the GOP, or God knows where we’d be. People need to remember that SOB Bernanke gave BO and the RATS a green light for more spending in FY 12, which badly hurt the GOP.