brooklynbadboy currently has a tongue in cheek diary up that may be truer than you think.
The stock markets rallied only temporarily on news of the deal... And then dropped to reflect the shitty jobs problems, etc.. Meanwhile? The credit ratings agencies seem to be still holding us hostage regardless of the vaunted bipartyshit deal.
Debt deal agreed but may not save US AAA credit rating
www.guardian.co.uk
Agreement criticised on both sides of the political divide, amid concern it may fail to be approved by Congress
And, oh yeah: Even if this deal passes the credit rating is still at risk. A little more below the fold.
"Stock markets around the world rallied on Monday, in relief that the world's largest economy would probably avoid running out of cash this week. But the agreement, which includes around $2.5 trillion of spending cuts over the next decade, has been criticised by some on both sides of the political divide, and will probably not save America's triple-A credit rating."
The dollar slide is another noteworthy issue reflective of the nature of the deal:
Dollar Drops Amid Speculation Debt Accord May Damp U.S. Growth
Aug. 1 (Bloomberg) -- The dollar slid against most of its major counterparts as investors speculated the plan President Barack Obama and congressional leaders agreed on to prevent a default and lower the deficit will slow the nation’s growth.
The greenback fell as investors also speculated the accord won’t be enough to avoid a rating downgrade. The yen dropped as stocks rose amid bets that chances of a U.S. default were lower and authorities said currency movements haven’t reflected Japan’s fundamentals. New Zealand’s dollar reached a record after data showed China’s manufacturing grew more than forecast. The Swiss franc reached records versus the euro and dollar.
“The fact the U.S. has gotten itself into a difficult situation where it has to come up with savings and spending cuts raises serious concerns about the U.S. growth outlook for the next few years,” said Paresh Upadhyaya,
The dollar slide might have a few short term benefits if you are among the very few manufacturers in the USA. But for the rest of us it just means that too many things we have to import are going to get very expensive very fast if this does not turn around...