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Stocks move to new lows as President indicates zero progress

  • Stocks slip to new session lows as the President holds a news conference on the shutdown and indicates zero progress towards ending the government shutdown and raising the debt ceiling.
  • S&P 500 (SPY -1%), DJIA (DIA -0.8%), Nasdaq 100 (QQQ -1.8%), Russell 2000 (IWM -1.7%).
Comments (22)
  • Looks like the Regime needs Putin again.......
    8 Oct 2013, 02:53 PM Reply Like
  • Just for starters...
    8 Oct 2013, 02:56 PM Reply Like
  • and gold is down and the dollar up? Interesting times to say the least
    8 Oct 2013, 02:56 PM Reply Like
  • Let it go past October 17th without raising the debt ceiling and the Federal Government will be forced to spend no more than it takes in.
    8 Oct 2013, 02:59 PM Reply Like
  • Obviously they don't call you Rope a Dope for nothing?

     

    The USA enjoys a tremendous financial advantage in the world economic system by being the currency of last resort. It absolutely amazes me to no end how quickly people are willing to just toss that gift under the bus because of some perceived dream that all the budget problems of the last 70 years will automatically be solved. Nobody can be naive enough (stupid enough?) to think that just because the debit ceiling does not get raised that all the budget issues of the government will magically disappear?

     

    Come on!!! NOBODY can be that ignorant can they?

     

    I guess if you like deep recessions that last years, fiscal issues that do irreparable harm to the currency and 15% unemployment, your answer will be yes.
    8 Oct 2013, 03:16 PM Reply Like
  • @wisepokerguy -- well said! It is sad that the reasonable middle is slowly disappearing. Arguments are more likely to be won by the extreme positions.
    8 Oct 2013, 03:26 PM Reply Like
  • The Federal Government has been tossing the US Dollar under the bus for years. I give it 2 to 5 years before the dollar loses its fiat status.

     

    Budget issues? What's a budget? Obama doesn't want a budget because it would restrain spending. When the government is forced to live within its means, that's when all the incredible waste in our government will end. That won't be magic, it will be reality.

     

    I'm prepared for the collapse of the US economy; it's inevitable.
    8 Oct 2013, 03:28 PM Reply Like
  • Question Dope --- do you normally cut off your nose to spite your face?

     

    Frankly, the last sentence you wrote above just about says it all for your stated position. Change your profile name to "Chicken Little".
    8 Oct 2013, 04:31 PM Reply Like
  • WPG – never. But ... if faced with a choice of losing my nose today and having my head lopped off in the future, I’ll sacrifice the nose today.

     

    Yeah, I hear the Chicken Little comment or similar comments all the time. You’re entitled to your opinion as well as your personal approach to financial planning but I’d like to have just one Liberal explain to me how they believe our current fiscal path can be maintained; just one. I’ve been waiting for years with no feasible explanation.

     

    I’ve posted this link a few times on SA but it pretty much sums up the beliefs I have of where the US is headed. I might disagree to an extent with some of the numbers (some high, some low) but this article does a good job of laying out where our debt really is and why our current fiscal course cannot be maintained. This is just pure math.

     

    http://on.wsj.com/19PNQg1
    8 Oct 2013, 05:02 PM Reply Like
  • Switzerland enjoys a financial advantage (and many others) because of their fiscal policy.
    Our increasing debt must stop growing. The huge debt 1. lowers the value of the USD. 2. requires taxes just to pay the interest 3. interest paid in 2013 was $416 billion 4. interest paid to foreigners was about 1/2=$200 billion.
    I know a guy who has 5 credit cards with a total limit of $80K+ He can't control his spending however.
    I know another guy who has no credit card but has a job and saves his money.
    Which is better?
    8 Oct 2013, 06:29 PM Reply Like
  • Maybe how the economy operates matters more than government smoke blowing. When the middle class gets the shaft so does the stock market eventually.
    8 Oct 2013, 03:06 PM Reply Like
  • That's like the "red line" debacle..he talked himself into a corner and can't get out..
    8 Oct 2013, 03:07 PM Reply Like
  • Here is a novel idea. Somebody in the White House could act presidential and actually work with the other side toward solutions. The Republican Donkeys (fake conservatives) aren't supposed to be the only side compromising all the time.
    8 Oct 2013, 03:09 PM Reply Like
  • I think Obama wants the chaos of a default, as he thinks he can gain more power from the results of a default. Economic chaos benefits his power consolidation of a permanent state run economy.

     

    Kind of like a Chavez in training.

     

    He figures he wins either way - at a minimum he sets the groundwork for taking over the health care system in this country in a few years, or he can let the default allow him to do that (and a lot more) almost immediately.

     

    A large percentage of his voting base is certainly clueless - all they know is their entitlement payment would not be showing up.
    8 Oct 2013, 03:09 PM Reply Like
  • Taxman, if the government technically defaults, I don't think they'd be able to find the money to fund Obamacare. They won't be able to spend any more money than they take in and I think Obamacare and all the Obamaphone programs would have to go.

     

    Works for me.
    8 Oct 2013, 03:15 PM Reply Like
  • Ah, the simplicity of blissful ignorance.
    8 Oct 2013, 03:58 PM Reply Like
  • You are correct, Obama wishes more chaos as more people will need the govt. to find "the solution".
    8 Oct 2013, 06:24 PM Reply Like
  • "They" all need a short-term fix.

     

    $300B on the debt limit gets us to $17T even and probably about 4 months of breathing room.

     

    CR with current spending levels, elimination of the 2.3% medical device tax, and a 1-year delay of the "Individual Mandate" to match what Obama did for the business mandate. The 17% "shutdown" can drag on a lot longer than the debt limit issue.
    8 Oct 2013, 03:20 PM Reply Like
  • So many shoes in the room....so few with the courage to throw them at Him.
    8 Oct 2013, 03:43 PM Reply Like
  • maybe we should take away all of the salaries of everyone in Washington including our President and tell them that they get paid when they learn to play nice in the sandbox together and learn to share and NEGOTIATE with each other..
    8 Oct 2013, 03:47 PM Reply Like
  • ipswich :" maybe we should take away all of the salaries of everyone in Washington including our President and tell them that they get paid when they" EARN their paycheck like the rest of the working public.
    8 Oct 2013, 04:05 PM Reply Like
  • To those above who support Obama spending us into oblivion, you may have a surprise in store for you in the future.
    1. The value of the dollar will continue to fall
    2. interest paid on the debt must be made, and it's huge.
    3. 2013 interest on our debt is $416 billion.
    4. Almost 1/2 of the interest on our debt is paid to FOREIGNERS

     

    So, let us know just how paying $200 billion/year to foreigners helps our economy in ANY way??

     

    Your future net worth is going to be lower the higher the total debt is.
    A. your future dollars will be worth less B. your taxes will go up to make those interest payments.

     

    So, higher US debt 1. hurts your own pocket 2. hurts our own economy.

     

    I realize that the liberal who understood math is in the Smithsonian in a jar, but I continue to try to help them understand how bad huge debt spending is for all of us.
    8 Oct 2013, 06:22 PM Reply Like
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