Among the gloom and doom predictions regarding the debt ceiling problem, it was predicted that the stock market would crash.
While it was not a crash, the U.S. stock markets took another big dip today.
From Reuters:
* S&P 500 turns negative for year
* S&P closes below 200-day moving average
* Global growth fears weigh on stocks
* Dow off 2.2 pct, S&P off 2.6 pct, Nasdaq 2.8 pct
* For up-to-the-minute market news see [STXNEWS/US] (Updates to close)
By Edward Krudy
NEW YORK, Aug 2 (Reuters) - The S&P 500 turned negative for the year on Tuesday as the wrangling over the U.S. debt ceiling faded and investors turned their attention to the stalling economy.
The broad-based index fell for a seventh day and crashed through the key 200-day moving average in an ominous sign for markets. The seven days of losses mark the longest losing streak since October 2008.
"It is going to be a long week," said Jim Maguire Jr., a NYSE floor trader at E.H. Smith Jacobs. "The bid is not here in the market."
The selloff accelerated into the close as volume jumped well above average. The fall was broad-based, with four stocks falling for every one rising on the New York Stock Exchange.
The index also broke through its 2-1/2 year uptrend line from its bear market low in March 2009. Thursday was the index's worst day in a year.
http://www.reuters.com/article/2011/08/02/markets-stocks-idUSN1E7711SW20110802
On a day the stock markets should have been jumping for joy, the stock markets sank like Congress's positive poll numbers.
This debt ceiling debacle was just a big sloppy kiss for more federal spending. Spending like NBA basketball players spending money in Las Vegas- little or no self control.
Thank you Joe Heck, Shelly Berkley and Crybaby Harry Reid.
"That little thing called special."
1 hour ago
The debt deal was good news to the markets. However, there was more bad news than good: weak manufacturing, weak consumer confidence, weak hiring. Oh, and the EU is still a mess.
ReplyDeleteAs for out of control spending, you need to look at the numbers. Military spending is up because we're in two wars. Medicare & Medicaid are up because we're in a recession. Stimulus & TARP are winding down. Domestic spending is near record lows (vs GDP).
So outside of wars & the recession spending is pretty under control, apart from longer term medical costs.
Taxes are a big part of the deficit problem too though. The Bush cuts leave us with near record low revenue (vs GDP), and then the recession hurts tax revenue too.
To say that spending is out of control is pretty inaccurate, unless you're talking about the military.