"Many Wall Street banks hold interest-rate sensitive products on their books, and stand to lose big if a debt crisis sends safe-haven Treasury yields spiking.
Thus far, investors have been most preoccupied by the unfolding financial catastrophe in Europe, where debate rages about whether Spain will finally throw in the towel and accept an international bailout.
Still, the threat of higher taxes and deep spending cuts loom large. The noise of the presidential election and partisan gridlock in Washington has left budget negotiations at a standstill."
The calls for a "Grand Bargain" are rising louder. The election results will determine what it looks like, and when it will happen. - Wes