At the very last moment, politicians in Washington DC decided that the U.S. would not default on its debt responsibilities. Official bankruptcy has been averted for the time being. Time to celebrate, hooray!
There are a few lessons to be learned from the drama that has played out over the last few weeks.
1. Washington is dysfunctional
There are really three parties in Washington now: the Democratic Party, the Republican Party and the Tea Party. It was hard enough when only two factions were left to negotiate and legislate. With three separate philosophies all seeking to move agendas towards their goals, you can assume gridlock is alive and well.
2. Get ready for January
Don't think that the drama we saw in October is the end of this wonderful theatre. The debt ceiling, as well as a spending plan, has only been approved until January so this will play out again with the same noise and fervor. We need to normalize our expectations and recognize that for better or worse, this is how Washington operates.