Day two of the David Brat sell-off as the Dow Jones Industrial Average falls over 100 points in addition to the selling esterday.
Much more important than immigration reform, David Brat being the house majority leader may imperil future debt ceiling negations. This probably the main reason why stocks have fallen since his primary victory. Selling should be treated as a buying opportunity because the odds of default are still slim, and even if it does happen, our creditors will understand that this is due to politics and not fundamental economic weakness.
The uncertainty wrought by having David Brat in such a great position of power underscores why we need more money in politics, not less. Mr. Prat, a professor, is a person of modest means, which is fine, but he doesn’t have much to lose if the economy falters and the market tanks. He will still keep his job at the university and or in Washington. Now, someone who is a major economic stakeholder with lots of assets has more to lose if things get bad, so it will be in his best interests to try enact pro-growth policy than reckless policy for the sake of partisanship.