jfk, it is another fun to read your politic analysis on market operation. It should change people opinion that you are just doing trading on technical sigals.
For people who have seen 911, 2008, and all crisises over the past years, this is another relatively small show. The general market can always come out higher after it goes down. For long term investors, you don't need care your stock price movement caused by general market. Instead, if 20% cut is caused by company news and events, you need analyze its impact on company future performance.
On politics side, I don't think either side can dare to default US intentionally. It does not exclude they could play too far and out of control. I don't blame either side politicans on their stronghold, because they both represent american people and get strong support. Just like a company stock, short term people want price to go higher and higher so they can have fast convenient money. Long term people want more consolidation with focus on company solid performance in the future. Right now in the US, about 50% relatively poor people want more welfare and the government can provide more help. Another 50% people with no near term concern have more care on the country future. This is not a unique situation for US. It happens again and again in history. Rich get richer and poor get poorer. If the US political system is unprecedent in human history, we should find a way to elevate out of this history cycle. We need need a great statesman leader to breakdown this political deadlock. I don't see any hope from either Obama or Ted Cruze.