USA TODAY: …Back in the summer of 2011, the last time Washington lawmakers were in a fiscal fist-fight and talk of a first-ever U.S. default dominated the airwaves, Wall Street was mighty scared. How scared? A widely followed stock market “fear gauge,” known as the VIX, doubled in a matter of days in early August…
In contrast, in the current budget impasse, or Day Four of the government shutdown, fear is conspicuously absent from the Wall Street scene, despite dire warnings from the U.S. Treasury on Thursday that a U.S. debt default would lead to a financial crisis on par, if not worse, than the 2008 financial crisis.
In fact, on Friday, the VIX actually declined 5% to around 17, just a tad above the 16.60 closing reading on Sept. 30, the day before the government shutdown began. Even at its peak on Day Three of the shutdown Wednesday, the fear gauge only popped as high as 18.71… (more)
