House Majority Leader Eric Cantor will step down 31 July. And there will be a fight to step in his place and most likely will be an extreme right kind of guy.
For the markets is bad news as we will go back to the in fight to the death between Democrats and Republicans and it will be even worse as the moderate Republicans have been utterly defeated….so now they will all flock to the extreme right.
The gridlock in the US Congress will reappear and it will be more severe than before (one of the mantra of Brat is no rising of the debt ceiling for 5 years…or death).
The Immigration reforms planned by President Obama are dead.
Considerations:
For how much I personally can’t understand the Tea Party people, you need to admire the democracy in the US (at least at this level) where an unknown professor with no budget and just $40,000 in the bank (these data are public in the US) and $200,000 campaign budget defeated a multi millionaire “superpower” guy like Cantor with a campaign budget of $5,500,000 millions and backing from Goldman Sachs, Blackrock, Oracle, Verizon.
Brat is anti Wall Street, anti big business. He has support not because is mad, but because this Federal Reserve sponsored recovery made the rich richer and the poor poorer.
In 2013 an Associated Press “real America” survey showed that 80% of American are struggling to make end meets. And that is why the Tea Party is rising again (similar to the Euro Skeptic party, religion apart). Unfortunately all Western countries are actually heading that way (yes also Australia, with rising costs and the new Budget).
We should all respect the US for that. With all its faults.
investorpolitico 