Why are financial markets apparently unconcerned about U.S. solvency? Surely not because they expect Trump to act responsibly. The clear implication is that the markets expect Democrats to do what they’ve done repeatedly in the past: clean up the fiscal mess Republicans left behind. So what should Democrats do? I’ll get to recommendations in a subsequent post. For now the key message is, don’t panic. Interest rates are up, but this is not a debt crisis.