After a week spent in San Francisco, I was most struck by trader commentary over the weekend that the President's bruising fight over Syria might change the outlook on the choice for the next Fed chairman.
The argument went like this: the fight over Syria is not going well for President Obama. There is a high probability that the President may lose an outright vote in the House of Representatives (despite some support from John Boehner), or be forced to pull the resolution before there is a vote.
This means that the President is in a weaker position to negotiate on his domestic agenda.
(Read more: Kudlow—agenda crippled?)
That would include Obamacare and an end to the sequester, but most importantly for Wall Street it may mean that he may not be as willing to support Larry Summers as the next Fed chairman, given the opposition that is already lined up against him.
My point: this is a second-term President with very limited political capital. His popularity ratings are not far from new lows.
(Read more: Companies sweating Obamacare tax)
If he puts all his eggs into this basket, he will have less ammunition to fight the domestic fights.
Where does he pick and choose to fight? Does he give up on Obamacare or Larry Summers?