Yglesias and the debt ceiling debate

He thinks it was a serious blow to the recovery, here. And doing it all over would be a bad thing. Hat tip to Tyler Cowen.

My own sense is that any signal US political structural dysfunction scares the global economy. And the debt ceiling debate was as clear a signal as one might imagine. The key is that when the world’s only remaining superpower shows sign of instability, risk takers run to the sidelines.