Already nervous stocks have been discounting deepening political risks.
The pro-energy and anti-consumer consensus is ripe for reversal.
Fed rate hike expectations are above pre-Katrina levels -- so why is gold so high?
Grassley puts tax cuts at risk, while Greenspan gives himself one more vote.
A deficit hawk has emerged as the unlikely man at the margin on tax cuts.
Bond markets are only beginning to see that the Fed's normalization course will not be deterred.
Gold's inflation warning is too obvious for even the post-Katrina Fed to miss.
Pro-growth policy is still on track, despite post-Katrina economic and spending shocks.
Bonds are captured by "money illusion" -- but the Fed is unlikely to play along.
The post-Katrina risks to markets are mostly political, not economic.