It was quite obvious to many in America and around the world (as elaborated by this blog earlier) that Tea Party's intransigence in Debt Dialogue would eventually hit the markets hard and that is exactly what has happened. Even the senior members of Republican Party, who knew better or should known better, also demonstrated a complete disdain for a reasonableness accommodation.
The unfortunate message from Washington DC is that America is ungovernable. This is a very un-comforting thought. It has caused a downgrade of US credit rating and a decline in stock markets.
Retirees and those near retirement, have built their nest eggs with hard earned savings over their lifespans. They had barely recovered from the 2008 crash that they once again face a major decline in values of their investments. This time, the market decline was entirely avoidable. Had Washington entered into a responsible debt deal a few months ago, the message to markets would have been positive. But Tea Party's one point agenda - defeat Barack Obama in 2012 no matter what the cost, became a stumbling block to arriving at a timely settlement.
The 600+ point drop in Dow Jones on August 8 is most unfortunate. As in the past, the markets will ride out this storm too, but for many retirees, their 401K is a worth a great deal less today, than it was a few months ago.
Hopefully, the American electorate will remember all this in 2012 elections and send all those Congressmen and Senators packing, who put their warped ideology ahead of their nation's interests.