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Archive for October 6th, 2013

Look out slightly below, government shutdown edition

Posted by Charles II on October 6, 2013

Not a big move so far. But a roughly three-quarter point drop in S&P futures for a Monday does not bode well. And Asia ex-Shanghai looks to go red. I would not be surprised to see the markets down 2 percent on Monday, though of course that’s pure speculation.

And then there’s this Reuters piece:

While most on Wall Street continue to believe it very unlikely the United States will default on its debt later this month, banks and securities firms are already gearing up for how to handle any U.S. Treasuries tainted by missed payments.

Borrowing costs could surge for businesses and consumers and the stock market could plunge. The Treasury warned on Thursday that a default could trigger a financial crisis and the worst recession since the Great Depression.

SIFMA will be on high alert for a default beginning on October 16, the day before the Treasury says it might be forced to stop adding to the national debt.

Playing with nitroglycerin is so much fun… according to the Republican Congress.

And then there’s this:

Art Cashin says traders have a very cynical explanation for why the government shutdown fight hasn’t been resolved yet.

Cashin, UBS’ director of floor operations at the NYSE, told CNBC’s Bob Pisani around midday that “they don’t want to cut it off because both sides are getting partisan donations pouring like a water faucet in as long as they go nose to nose.”

Cashin predicts that once the contributions start to dry up, Congress will go back to “doing the people’s business.”

Posted in economy, stock market | 2 Comments »

Republicans And Their Shutdown/Default Gambit Not Popular

Posted by Phoenix Woman on October 6, 2013

Passing along a few items of note:

Rep. Peter King (R-NY) admits that the Republicans own the shutdown/default: “We are the ones who shut the government down.” King also accused the Tea Party wing of the House GOP caucus of being on a “kamikaze” mission to extend the government shutdown they forced as well as to force a default on America’s debts and obligations.

Those staged-for-the-camera bullying sessions Republican legislators have been having at the national parks they shut down have backfired on the GOP:

“Oh yeah, they’re going to show up, they want to make themselves look like they care and they’re doing something. What are they doing?” said Gary Gillest, a Vietnam veteran who has visited D.C. several times with his friends in the Charlie Company 25th Infantry Division. “And look, there are tea party activists over there! I mean, they’re idiots.”

Ken Cuccinelli, Virginia Republican candidate for governor, used to relish being associated with fellow Tea Partier Ted Cruz. Now, he keeps him at a distance even when he and Cruz are headlining the same fundraiser: “In the clearest sign yet of the potent effect of the government shutdown on the Virginia governor’s race, Republican Ken Cuccinelli avoided being photographed with Ted Cruz at a gala they headlined here Saturday night—even leaving before the Texas senator rose to speak.” (The Virginia off-year elections for governor and their House oF Burgesses are to be held November 5 of this year, and Cuccinelli was trailing his Democratic opponent McAuliffe even before Ted Cruz egged John Boehner into shutting down the government.)

PPP/MoveOn poll: GOP could easily lose the House next year because of the shutdown they forced. Oops.

— And yes, John Boehner was lying when he said that Harry Reid never negotiated anything with him concerning the budget or Obamacare.

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