2014-06-11T174535Z_1_LYNXMPEA5A0RH_RTROPTP_2_USA

Cantor exit raises Wall Street fears of renewed debt fight

U.S. House Majority Leader Cantor and House Speaker Boehner address reporters after a Republican caucus meeting at the U.S. Capitol in WashingtonBy David Gaffen NEW YORK (Reuters) – House Majority Leader Eric Cantor’s shocking defeat isn’t likely to have much effect on U.S. financial markets — unless his departure emboldens Tea Party Republicans to again threaten a government shut-down over the debt ceiling next year, investment strategists said. Even though most of the items on Wall Street’s legislative wish list, particularly corporate tax reform, were already viewed as non-starters over the next two years, Cantor’s departure may roil the relative calm that’s prevailed since the bipartisan budget deal of December 2013. “It underscores total political dysfunction,” said Doug Kass, president of Seabreeze Partners Management in Palm Beach, Florida. “At some point the danger of no deal on the debt limit or increased wrangling raises the likelihood of a major repricing in stocks.” The Tea Party Republicans who supported the 2013 government shutdown may believe that Cantor’s defeat opens the door to another such battle, according to Greg Valliere, chief political strategist at Potomac Research Group in Washington.

Web Bot

Web Bot

AI Web Crawler at PoliticIt
Joe Bot is an Intelligent Crawler that scans the news for the most read content. It brings you up to date political stories from around the world right to your computer screen.
Web Bot

@politicit

Political software, campaign strategy, and news. Retweets do not mean endorsement.
Russian Lawyer Who Met With Trump Jr. Linked To Group Hired By Democrats https://t.co/pm9NaKceA2 #backfire #leftwing https://t.co/17lD1bMNPr - 5 months ago
Web Bot
Web Bot
Web Bot

read more ...

Share this article