I spoke to Axios‘ Neil Irwin about the debt limit collision course and the circular risk of market optimism and underreaction.
What they’re saying: “In order for Congress to act expeditiously, there must be a sense of gravity around the consequences should they fail to act,” Liam Donovan, a principal at Bracewell LLP, tells Axios.
•”At this point, conventional market wisdom is actively undermining that sort of pressure by projecting unmitigated confidence that it will all work out,” he said.
The bottom line: The sanguine outlook on Wall Street makes it more likely that some ugly days may be in store later this year.
Read the full piece here.