Posted on 04/19/2012 1:40:19 PM PDT by Vintage Freeper
For all the well-paid analysts and sophisticated computer systems that dominate trading, Wall Street still can't seem to focus on more than one thing at a time.For now, the focus has returned to the European debt crisis, as the issues that cut down Greece, Portugal and Ireland have hit Spain hard.
But very soon, as Election Day approaches, the attention will turn back to U.S. debt and deficit issues, which, as in Spain, are caused by too much debt and a government trying to avoid its budget-cutting duties. Remember last summer's debt-ceiling debacle and the market meltdown caused partly by the loss of the Treasury's AAA credit rating? Get ready for the sequel. (Snip)
Economic research suggests both higher debt and deep short-term austerity limit economic growth. So we can pick our poison. (Snip)
A decision on all of these issues -- the deficit, the debt ceiling, tax cuts and unemployment benefits -- will need to be made in the context of a fierce, polarized presidential election, the lame-duck congressional session that will follow and an even-more-divided government in 2013. Prediction markets suggest President Barack Obama will win re-election and Republicans will hold the House and retake the Senate. (Snip)
(Excerpt) Read more at money.msn.com ...
The People are the engine - Government is the restrictor plate. :)
The People are the engine - Government is the restrictor plate. :)
A rational approach to politics, very refreshing.
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