I’m obviously removed from the action, but I’m surprised at the complacency in DC and in the markets over the fact that the sequester is a comin’ soon. Next week Congress is out of session, and the media messaging from both sides at this point lacks the sense of urgency (in particular, front page reports of intense pow-wows) that I’d expect if a deal were to be done by the sequester deadline of early March.
So I have these questions for the NC commentariat:
1. Do you think there be a deal before the sequester?
2. If not, how many days do you think we will be in the sequester?
3. How much do you think the deal will do (on paper) to reduce the 2013 deficit (hint: we know from Europe it will only make the debt to GDP ratio worse, but we’re looking for the official beancount, not the actual down-the-road impact).
4. Bonus question: what do you expect to be the most horrible feature of the deal?