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Market Views Debt Deal Mostly Positive
Townhall.com ^ | August 2, 2011 | David Malpass

Posted on 08/02/2011 12:51:18 PM PDT by Kaslin

The House and presumably the Senate have finished a last-minute deal to increase the debt limit.  While it doesn't provide structural reform or much in the way of spending cuts, we think it is otherwise a better-than expected outcome for financial markets.  

 
It should strengthen the dollar temporarily, lift equities and start the process of moving bond yields up toward more normal levels.  U.S. GDP growth and developments in Europe (particularly EU steps to counter the procyclical interaction between short selling, derivatives and ratings downgrades) are important remaining variables in the strength of the asset reallocation from bonds to equities. 
 
Good outcome for financial markets:

 
 

 
 

 
Possible elements of the deal:
 
 

 
 

 


TOPICS: Business/Economy; Editorial; Government
KEYWORDS: wtf

1 posted on 08/02/2011 12:51:21 PM PDT by Kaslin
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To: Kaslin

The DOW reflects the market positive outlook! /sarc


2 posted on 08/02/2011 12:52:44 PM PDT by DonaldC (A nation cannot stand in the absence of religious principle.)
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To: Kaslin

I want some of what he is smoking.


3 posted on 08/02/2011 12:52:55 PM PDT by Ingtar (Together we go broke (from a Pookie18 post))
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To: Kaslin

The Dow Jones is down over 200. I guess the investment community does not share the polticians optimism.


4 posted on 08/02/2011 12:53:31 PM PDT by DarthVader (That which supports Barack Hussein Obama must be sterilized and there are NO exceptions!)
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To: Kaslin
Yeah, the Dow always sheds 200+ points on good news...

Honestly, did I fall down a rabbit hole? Am I dreaming, or do people really read and believe this bullshit? I know none of us here do, but can the average Joe out there really read this and think it's so?

5 posted on 08/02/2011 12:54:11 PM PDT by Fedupwithit ("The welfare of humanity is always the alibi of tyrants" -Albert Camus)
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To: Kaslin
Market Views Debt Deal Mostly Positive

say wutt?

6 posted on 08/02/2011 12:54:54 PM PDT by _a_0_0_
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To: Kaslin

Obviously the reader is unfamiliar with markets.


7 posted on 08/02/2011 12:58:11 PM PDT by SC_Pete
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To: Kaslin

Look at gold and silver charts to see what the market thinks of this deal


8 posted on 08/02/2011 12:58:25 PM PDT by is_is (VP Dad of Sgt. G - My Hero - "Sleep Well America......Your Marines have your Back")
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To: DarthVader

Looks like it wouldn’t take much to have one of those Fall 2008 last fifteen minutes.


9 posted on 08/02/2011 1:01:23 PM PDT by John W (Natural-born US citizen since 1955)
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To: DarthVader

Getting a debt deal was already contemplated by the markets. It was never in doubt. The Dow fell yesterday because of the manufacturing numbers were the lowest in 2-years. It’s falling today because consumer spending (70% of GDP) came in way below expectations. In other words, the economy sucks.


10 posted on 08/02/2011 1:02:05 PM PDT by Wyatt's Torch (I can explain it to you. I can't understand it for you.)
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To: Kaslin

I think the market is so happy it just took a dump.

What is this guy smoking?


11 posted on 08/02/2011 1:02:41 PM PDT by Sequoyah101 (Half the people are below average.)
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To: Wyatt's Torch

The OBAMA economy sucks.


12 posted on 08/02/2011 1:03:00 PM PDT by John W (Natural-born US citizen since 1955)
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To: DonaldC
He meant markets other than U.S. equities, gold, and Swiss Francs apparently.
13 posted on 08/02/2011 1:03:10 PM PDT by rogue yam
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To: Kaslin

As of right now, the DOW is down 226.25. The Nikkei shed 120 points yesterday (or 1.21%). If this is a positive reaction, then I would hate to see a negative one.


14 posted on 08/02/2011 1:04:26 PM PDT by camerongood210 (Obama's Debt Ceiling = $16.7T. GDP for 2010 = $14.7T)
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To: DonaldC

ALL IS WELL! REMAIN CALM!

15 posted on 08/02/2011 1:04:56 PM PDT by MrB (The difference between a Humanist and a Satanist - the latter knows whom he's working for)
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To: DonaldC

Almost sorry I swore off the nightly network news some years back. It would be enjoyable watching them attempt to explain the great passing/signing vs. the DJIA. Assuming they would lie.


16 posted on 08/02/2011 1:04:56 PM PDT by John W (Natural-born US citizen since 1955)
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To: John W
The OBAMA economy sucks.

Every economic post I put Twitter leads with: The Obama Recovery...

17 posted on 08/02/2011 1:05:05 PM PDT by Wyatt's Torch (I can explain it to you. I can't understand it for you.)
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To: Kaslin

>>> Market Views Debt Deal Mostly Positive by David Malpass

Mr. Malpass, just wait a day or two.

Until the ramification of the awfulness sets in.


18 posted on 08/02/2011 1:05:44 PM PDT by Sir Napsalot (Pravda + Useful Idiots = CCCP; JournOList + Useful Idiots = DopeyChangey!)
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To: Wyatt's Torch

Yes but what goes on in government is a driver for the economy as there are inter dependencies between the two.


19 posted on 08/02/2011 1:06:29 PM PDT by DarthVader (That which supports Barack Hussein Obama must be sterilized and there are NO exceptions!)
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To: Kaslin

That’s why Gold shot up over 30 points to $1658 after His Barackness pontificated again from his throne!


20 posted on 08/02/2011 1:11:40 PM PDT by Cincinna ( *** NOBAMA 2012 ***)
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To: Kaslin

That’s why Gold shot up over 30 points to $1658 after His Barackness pontificated again from his throne!


21 posted on 08/02/2011 1:12:18 PM PDT by Cincinna ( *** NOBAMA 2012 ***)
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To: Cincinna

What the hell. The market is down over 200 points, and this reflects a mostly positive view???


22 posted on 08/02/2011 1:14:41 PM PDT by mware (By all that you hold dear on this good earth, I bid you stand, Men of the Wes)
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To: Kaslin

Brilliant. Dow was in freefall to the close. Down over 260.


23 posted on 08/02/2011 1:17:35 PM PDT by PBRSTREETGANG
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To: Kaslin
The problem with this analysis is that is assumes the issue with the US economy centered around the debt ceiling. The US still has many structural issues-

* Corporate tax rate that is one of the highest in the World.. Yet effective rates are about in the middle. Which means of course that crony capitalism reigns and companies like GE pay zero tax and job creating small and middle size businesses pay the highest rate in the WORLD.

** Over burdened with government regulation. Massive government with bureaucrats that sit around with nothing better to do than to write new regulations.

*** Trillion dollar deficits for the foreseeable future.

**** Horrible energy policy. The cost of energy and transportation is driving cost up that traditional business models no longer work.

***** Health Care. Since ObamaCare puts heath insurance on private employers, businesses refuse to grow.

24 posted on 08/02/2011 1:20:48 PM PDT by 11th Commandment (http://www.thirty-thousand.org/)
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To: Kaslin
"Market Views Debt Deal Mostly Positive"

Yeah, pretty positive indeed. The dow is at -265 and gold is $1660 an ounce. The market seems elated!

25 posted on 08/02/2011 1:23:27 PM PDT by meyer (We will not sit down and shut up.)
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To: Kaslin

Congress got their vote.

Now the people who have to pay the bill get theirs. And they’re voting no.

Market edging toward free-fall range now, down 265, 2.19% as of this moment.


26 posted on 08/02/2011 1:23:58 PM PDT by filbert (More filbert at http://www.medary.com--GAME ON!!!)
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To: Kaslin
Really? Really?
27 posted on 08/02/2011 1:25:14 PM PDT by jersey117
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To: meyer

You have to remember the author wrote the article probable yesterday or two days ago. Had he written it this morning or noon, it would most likely be a different article


28 posted on 08/02/2011 1:31:25 PM PDT by Kaslin (Acronym for OBAMA: One Big Ass Mistake America)
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To: DonaldC

I read the title and then went to see what the market was doing and yeah, it looks like they just love it, NOT, it is down 265 right now. The Asian and European markets were down too.


29 posted on 08/02/2011 2:00:06 PM PDT by tiki
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To: DarthVader
Yes but what goes on in government is a driver for the economy as there are inter dependencies between the two.

No doubt. The government is stifling business growth right now for sure and that is contributing to the very poor economic news over the last 3 weeks. The issue on the debt has not weighed on the markets because everyone always expected that to get done.

30 posted on 08/02/2011 2:17:04 PM PDT by Wyatt's Torch (I can explain it to you. I can't understand it for you.)
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To: All

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31 posted on 08/02/2011 2:22:15 PM PDT by DeoVindiceSicSemperTyrannis (Want to make $$$? It's easy! Use FR as a platform to pimp your blog for hits!!!)
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To: Kaslin

Sounds like the SH*T Michael Medved and Hugh Hewitt have been spewing.

Center “Right” sucks. And everybody on Townhall.com SUCKS!


32 posted on 08/02/2011 3:01:10 PM PDT by UnbelievingScumOnTheOtherSide (REPEAL WASHINGTON! -- Islam Delenda Est! -- I Want Constantinople Back. -- Rumble thee forth.)
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To: Kaslin

Explain why the DOW has been down all week!


33 posted on 08/03/2011 7:39:42 AM PDT by upcountryhorseman (An old fashioned conservative)
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