Dow Plummets as Deficit Supercommittee Fails on Capitol Hill

Gridlock at the budget supercommittee is generating movement on at least one front: The Dow tumbled more than 320 points (2.6 percent) Monday morning.

The prospect of continued nonaction in Washington made stock traders decidedly bearish as Republicans on the 12-member panel aren't buying Democrats' proposed tax increases ("revenue enhancements") while Democrats won't go along with proposed GOP cuts.

The committee's failure to meet today's deadline to produce $1.2 trillion in budget cuts will trigger automatic reductions in Medicaid and defense spending.

Rep. Allen West, R-Plantation, issued a statement this morning, saying:

"The president and this administration would rather sit back and watch automatic cuts kick in that will be devastating to our military -- ripping $600 billionfrom defense in 10 years. At a time when America's enemies are more emboldened than ever, our military needs to be supported, not shredded.

"The American people are sick and tired of Washington, D.C., and there's good reason why. The failure of this supercommittee is an embarrassment to Congress and to the American people."