Does Congress Only Respond to Fluctuations in the Stock Market?

That seems to be the view of the NYT editorial board which concluded a piece on the fiscal standoff by saying:

"But if Congress cannot approve a deal by New Year’s Day, the anticipated sell-off on Wall Street in early January would, one hopes, force House Republicans to budge."

This view, if correct, is truly scary. First, the real impact of failing to come to a deal is the higher taxes and reduced spending which will soon slow growth and raise unemployment if Congress waits too long into 201...