Ad Hoc Commentary – the boy who cried ‘debt ceiling’ wolf, beware those debt instruments

“…Boehner was elevated to the speakership thanks to the power of tea party candidates in 2010 and then limited by what he could accomplish because of them. The conservative bloc of lawmakers consistently pressed Boehner to take a harder line with Obama and Democrats, a strategy Boehner, a consummate dealmaker, did not always embrace…”
http://www.cnn.com/2015/09/25/politics/why-john-boehner-quit/

“…House Majority Leader Kevin McCarthy has dropped out of the race to succeed Speaker John Boehner, a shocking move that throws the House into chaos… The uncertain future of House GOP leadership comes less than a month before Congress must take action to raise the debt ceiling to keep the U.S. from defaulting on its debt obligations — a critical vote conservatives have in the past sought to stall in order to pull concessions from Democrats… Rep. Paul Ryan, the chairman of the Ways and Means Committee and someone who had been viewed as a contender for the job, immediately said he is not interested… With conservatives again floating his name, Rep. Trey Gowdy said he will not run for speaker. Asked if he would reconsider and join the race if his GOP colleagues urged him to get in, he replied, “No.””
http://www.cnn.com/2015/10/08/politics/house-speaker-republican-vote-mccarthy-webster-chaffetz/

Nobody wants the Speaker job. This is bad omen for the upcoming US debt ceiling fight. However, the majority continue to take for granted that the debt ceiling will be raised without much pain. It somehow reminds yours truly of the story of the boy who cried wolf. After being fooled a couple of times, the majority do not really care about the ‘debt ceiling’ wolf now. Perhaps this time the flock will scatter. Beware those debt instruments.

Good luck in the markets.