Obama to the Markets.....DIVE, DIVE, DIVE.....
My first thoughts the last ten days or so have been to guess how the markets would react when the debt ceiling was raised. Would it be sell on the news or a relief rally?? Now after Obama and Boehner did their bolstering I'm ready to batten down the hatches, realizing that what seemed so certain is really at risk, but the risk of default in the short run isn't the bigger problem after that display. I do suspect at least something will pass. Perhaps the kick the can option. I not going to take sides on which plan should pass, we all have our opinions just as the President and Congress do and it's unlikely that we could find compromise on an investment forum.
My comments are regarding the President telling the American people to contact their congressmen. I think occasionally on a few bills that might have some slight influence, but overall Congress isn't going to take an opinion poll and read the emails and messages from their constituents. The American public does vote every few years. The sentiment vary's and the balance shifts between the parties.
Some think that the Financial Markets are controlled by sentiment of day traders, retail traders, hedge funds, etc and that the sell orders control the flow of the funds from the mutual funds. The reality is that the markets are controlled by a relatively select few who can swing it widely. This will be the message that the Markets to send that message tomorrow morning. The sentiment will align with warning message that is usually sent when the market movers want to remind Congress where the power lays if they can't make up their mind.
First we threaten the paychecks of Social Security and Veteran recipents. Clearly the President and House doesn't know that these two groups carry more licensed guns than the law enforcement who might be called upon to stop the riots. The riots in Greece will look tame compared to getting those two groups working together.
Now we talk about a week extension due to better revenues, or a kick the can for six months or its the Presidents fault for vetoing it. The tiptoe up to the deadline and sign something at the last minute will most likely still happen, but the President wants a message sent. He's asked for the markets to step in.
Look out tomorrow morning. The overseas markets started the selloff yesterday and wondered why the American markets were relatively tame. We know Congress and the President can pass a bill in a day or two even though a week was said to be the bare minimum.
After tonights public display by school children, (actually that would be an insult to school children, we're in for the Market sending its message first.
Some day this too will end. It's just a shame that only do we look like idiots/kids that can't compromise to the rest of the world. We prove that we really are a bunch of children.
The Sky isn't falling this evening, but the governmnet is certainly making it dark and gloomy!