When the 2nd Quarter GDP number came out at 1.3% I wasn't overly surprised despite many expecting 1.8%. What surprised me was the downward revision of the 1st Quarter number from 1.9% to .4%. Now that is some serious revision. With that kind of a drop did we really turn negative 2nd Quarter when it is revised later? Now the market is generally forward looking so the last 2 quarters are history and this market is already looking into 4th quarter if not 1st Quarter next year. Earnings have been coming in overall positive, with some clunkers, so hoping the 2nd half turns out better than the first half. [more]
Yes this is another debt ceiling blog, but with an interesting suggested solution. The current numbers are there. We have 14 trillion dollars in debt at the moment. We always have an annual budget that at the present is about 1/2 trillion in the red. Congress is fighting to somehow deal with this issue. The problem as I see it, aside from the irresponsibility of holding increasing the debt ceiling as hostage, is cuts alone will simply never get rid of that debt. You would literally need to make draconian changes that will just kill any chance for this economy to recover. There simply needs to be somekind of income generation as well, and it is not going to happen through a miracle of job growth. Not in this recovery. But, there really is an interesting plan set forth by Congressman Chaka Fattah, which is basicaly the penny transaction fee that would be directly earmarked against the debt. [more]
I am being lazy on this one and just copying its profile. But I think it is a worth FOOLS taking a look at. [more]
Just curious what others think. Does it go passed August 2 or not?
I say no, mainly because Republicans will probably get hurt more should the stock market drop 2000 points in open hours on Agust 3. Now that would be one great buying opportunity too.