"The appeal of the American economic model took a major hit from the events of 2008; now we are doing the same to our political model. No one should be surprised when official entreaties to Egyptians go ignored, or when elites in China and other authoritarian societies conclude that their approach, for all its flaws, is still preferable to ours," CFR President Richard Haass writes in Politico.
"A 1,000 point drop in the Dow can solve most problems in Washington. In September 2008 a slightly smaller decline was enough to shake legislators from their refusal to approve the troubled asset relief program. But it would be better for Mr. Boehner not to find out," the Financial Times writes in an editorial.
"During the 2011 debt-ceiling crisis, consumer confidence dropped by 22 percent. When consumer confidence falls, people are less willing to spend and businesses are less willing to hire. That's how recessions—or depressions—begin, and that may be the most important consequence of all," Joe Nocera writes the New York Times in an editorial.
North Korea Puts Army on Alert
North Korea said its military is on high alert, warning the United States of "disastrous consequences" for moving ships into a South Korean port (Yonhap). Separately, South Korea confirmed that the North has restarted the Yongbyon nuclear reactor.
Paul Lewis, a lawyer and former U.S. Marine, is expected to serve as the special envoy to Guantánamo closure at the Defense Department (MiamiHerald). President Obama received a letter from religious and human rights groups on Monday complaining about the slow progress in closing the prison.