Posted on 01/20/2010 6:40:13 AM PST by SonOfDarkSkies
U.S. stock futures slid on Wednesday after reports showed new home construction fell far more than expected in December.
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Housing starts slid by 4.0% from the previous month to a seasonally adjusted 557,000 annual rate in December, the Commerce Department said Wednesday. Economists surveyed by Dow Jones Newswires had expected starts would dip by 0.2% to an annual rate of 573,000. However, building permits in December jumped 10.9% to a 653,000 annual rate. Economists had expected permits to rise by 0.2% to a rate of 590,000.
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Wednesday's action comes after a stunning upset in Massachusetts, where Republican state senator Scott Brown defeated state Attorney General Martha Coakley to replace the late U.S. Senator Edward Kennedy. Stripping Democrats of their filibuster-proof majority in the Senate, the election casts into doubt the fate of Congressional health care legislation, as well as other contentious topics including financial regulation and climate change proposals.
Health care stocks, after soaring Tuesday in anticipation of the shifting Congressional dynamics, held onto smaller gains on Wednesday. Shares of Aetna were up 2.6%, while WellPoint climbed 1.5%.
(Excerpt) Read more at online.wsj.com ...
Just wait a little bit until Wall Street realizes the following are DOA:
1) 0bummerCare
2) Tax Increases
3) Cap and Tax
4) Forced Unionization
5) Continued Nationalization of Industries
I think the capital will flow back into companies which will invest, grow and hire. Brown is the best thing to happen to the economy all year.
Brown killed 0bummer’s Domestic Agenda for Communism.
Why people talk about Wall Street is beyond me becuase it's just 12 inches of heavily traveled asphalt. Those of us who buy and sell stocks already know about what Mass. upset might bring but we also know about Obama's protection and bank taxes are already doing. B of A earning are down today and China's market's stumbling, so while we're hopeful we're also dealing with what is.
Hmmm, Master Card's (MA) up $2.30...
All markets are now global. The Fed pumped up the money supply and it inflated bubbles in emerging markets.
The Chicoms tightening credit to slow their bubbles in commodities and real estate is what I think spooked the markets. When the Chinese bubbles burst (and they WILL) there will be a massive ripple effect.
Would the Chicom leaders not inflate their currency to keep pace with the dollar dropping?
Where is the consumer demand? When will the big banks finally feel the pain of the defaults on RE and credit cards?
Eventually, I expect a wave of bankruptcies to wipe out the excessive debt around the world. Helicopter Ben may mean well, but I think his plan to inflate our way out of trouble will fail.
Do you remember who posted this?
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