Could the David Petraeus scandal sabotage fiscal cliff talks?

Congress needs to focus on a debt-reduction deal to protect the economy. But a tawdry sex scandal may prove to be a dangerous distraction

Gen. David Petraeus pauses during a media conference in 2004
(Image credit: AP Photo/Virginia Mayo)

The David Petraeus sex scandal is getting weirder by the moment. First, Petraeus, a long-revered former general, resigned as CIA chief after the FBI discovered he had an affair with his biographer, Paula Broadwell. And now, another top general, John Allen, is under investigation for exchanging possibly inappropriate emails with Jill Kelley, the Florida socialite who set the whole drama in motion by telling the FBI about threatening emails sent to her by Broadwell, who allegedly saw Kelley as a rival for Petraeus' affections. And then there's the FBI agent who was told to stay out of the case after colleagues discovered he had sent Kelley shirtless photos of himself... With all this swirling intrigue causing lawmakers to vow to get to the bottom of the tawdry mess, will Congress really be able to focus on more pressing matters — such as preventing the economy from plunging off the fiscal cliff at the end of next month?

The scandal is a dangerous distraction: "Now is the not the time to become preoccupied with sordid love scandals," says Henry Blodget at Yahoo Finance. There are only 50 or so days left to avert the fiscal cliff, a barrage of tax hikes and spending cuts that could trigger a recession in the new year. Members of Congress are vowing to look into the FBI's handling of the Petraeus case, but if they let this distraction delay a fiscal-cliff deal, the result could be disastrous for the economy.

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