US (Im)Balanced budget: Political Strangle and Economic Suffocation

The US Debt raise and Balanced Budget is likely to be Political Strangle Hold on the Washington and is expected to remain  an financial Traction and Suffocation to the ailing Economy. The Debt Deal prescriptions may starve the Economy and Inject a traction, which is Likely to act more of Noose, than a rope.

Alan Greenspan, in his recent interviews had rightly hinted the impasse and predicated a vary Late Awakening by political class of the impending reality. Washington news is churning all sorts of formulations.
The victory to neither and both republicans, democrats hints that,
         Bush Tax Cuts not extended.
1) The Bush Tax Cuts will vanish in thin air, replaced by a ' Cumbersome formula ' paving a larger   opaqueness. The Back Door Taxing will impinge the Corporates. 
                                                                                          The Shallow Expenditure Cuts:                                                                                                                                                                                                          

2) The Governmental expenditure will be Trimmed by an extent, which may appear too little, and unsustainable. The wafer thin margin of errors and provisioning for extremities will endure to uncertainty towards real fulcrum of the deal squabble.
         Absence of Long Term Plan                                                                                                                             
3)  The Lack of Long Term Plan and Uncertainty will invite the Rating Agencies to recur the down grading of US Sovereign Debt Sooner, than expected.
        Inverted yield Curve:
4)  The Rise in Borrowing shall, hence forth will accompanied by ' Rising Yields'. The Short Term End of the Yield curve may Rise, faster than the Long Term. This will make the 'Yield Curve' Inverted for the Medium Term.
                               Balancing Of Budget is delayed :
5)  The ' Unresolved Remainder Budget' will be maintained by the US Government, for now and shall nag, the Investors like 'a wagging tail'. The State Budgets discrepancies may surface
                               Continued Political Bickering.
6)  The redundant imbalance now is likely to taken to the each state and Common Citizens. This unresolved issues may be 'political menu' for the upcoming Election.  US will be seeing much too, turbulent times than is being seen, today and Polarisation may spurt in the coming months
                               Wall Street Response
     However , Wall Street and International Equity Bourses likely to celebrate the ' Relief Rally' for lifting the immediate traction and the ' Oil And Gas Sector' is likely to have better days. The Unwinding Trade in USD Index will ensue hereafter. The Spike Volatility shall be higher with VIX nearing 30/38 range
            Investors: remain on Wait/ Watch.
     But, Investors shall be better off, If they, remain Side ways and Deal with Utmost Caution, as ' Risk' is not Priced in the Equities and Bond Markets. And, wait for Opportune time to enter.