It's not just how the mkts react, it's how the populace reacts.
When (not if) the riots break out, the stupid/greedy/selfish American public sector workers and union people will take that as justification 9as if they need it) to riot here if there's any cuts.
Hollywood, FL is a large city with big financial problems. The mayor says there's 2 kinds of cities, ones that have big problems today, and ones that will have them soon. Financial problems will incite riots.