Dems needn’t negotiate

By Heather “Digby” Parton - 04/19/11 06:00 PM ET

Shudders went through the Beltway on Monday on the news that Standard & Poor’s had lowered its outlook for U.S. debt because of its “fears” that the Democrats and Republicans wouldn’t be able to come together to eliminate the deficit. The press breathlessly reported that the market “plunged” 140 points on the news. Chris Matthews barked, “This is scary!”

The so-called plunge turned out to be the biggest one-day drop since ... March 16 of this year. And Paul Krugman wryly commented on his blog that “If S&P warns that U.S. bonds might not be safe, and the price of those bonds rises, you really have to wonder how anyone can write with a straight face that this warning caused other market movements.” But let’s not let any of that get in the way of a good story: “The Market Gods are displeased with all this partisanship and Washington. Must. Heed.”