Much of this is a correlation/causation thing (and it doesn’t take into account the makeup of the Congress). But so is almost all markets reporting of the kind we saw on Wednesday.
If you must do the kind of daily market-reports stories that the business press thinks it has to (and read Felix Salmon on why it shouldn’t), then at least give us some context beyond what you think happened in six and a half hours of trading.
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What we are seeing here is likely the street's way of letting people know they're worried about government gridlock forcing instability like the sequester, tax cut expiry, and another debt ceiling fight.
We've seen that the republicans aren't playing nice nor responsible with the current administration and it looks like this bs is going to go on another 4 years.
Meanwhile, we know from Europe what austerity does during a recession and that's the path this administration is on. In a weak recovery from an epic recession environment, austerity policy poses a very real risk to your investments.
In other news, considering your past beat, I thought you'd get a kick out of this:
http://www.motherjones.com/kevin-drum/2012/11/companies-want-better-workers-need-pay-more
#1 Posted by Thimbles, CJR on Mon 12 Nov 2012 at 10:00 PM
Jamie Dimon talking about his task force on the Fiscal Cliff and how if nothing is done about the short term problem ('I don't want my taxes going up') then the economy will collapse 3% or more!!11
And if nothing is done about the long term problem ('Do Simpson Bowles! Lower our taxes and cut Social Security!!111') then OMG uncertainty and horror.
"If you just do what we ask before Dec 31st, we'll let you live (and your economy will boom, hopefully not in the 2008 sense.)"
These guys are kinda hateful the more you get to know them.
#2 Posted by Thimbles, CJR on Mon 12 Nov 2012 at 11:25 PM
Forgot the link. I suck.
http://video.msnbc.msn.com/cnbc/49764902#49764902
PS. Warning. Maria Bartiromo ahead. Not safe for brain. (Or children. It's not healthy for those of young age to be subjected to that much lips on bottom action)
#3 Posted by Thimbles, CJR on Mon 12 Nov 2012 at 11:29 PM
Hey, looks like Yves is a fan of your beat:
http://www.nakedcapitalism.com/2012/11/the-sucking-sound-of-at-least-some-skilled-workers-leaving-the-us.html
"Defenders of the Obama Administration’s indifference to high levels of unemployment often claim the problem isn’t readily remedied because the US suffers from “structural unemployment”. That’s really wonkese for blaming the victim. No sirreebob, the problem isn’t that there aren’t enough jobs, but that the workers are no damned good, as in they don’t have the right skills for our new super duper information based economy! In mainstream media outlets, claims like this are usually followed by a business owner saying there clearly aren’t enough skilled employees, he can’t hire any good machinists for $13 an hour."
#4 Posted by Thimbles, CJR on Fri 16 Nov 2012 at 03:28 PM