Category Archives: finance

Congratulation Mr. President, Now Can You Compromise withe Republicans on the Fiscal Cliff

I know it a little late but congratulation Mr. President, Can we compromise with the Republicans on the fiscal cliff. $16 Trillion is ENOUGH we must not ruin your children and my niece and nephew and their eventual children’s’ future. America cannot afford of debt.

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November 6th 2012 Another Juneteenth ??

Is November 6, is a another Juneteenth? My dad wondered because he along me and my brother was very disappointed in President Barack Obama. The President has the US economy gone down hill.

Unemployment at a Standstill 9.1% Surprise no New Jobs Created

Bad News just got worse as an August 2011 will go down as the first month 1945  Private Industry did not produce a job. Economists were expecting 80,000 created. From AP via Yahoo News:

Employers added no jobs in August — an alarming setback for the economy that renewed fears of another recession and raised pressure on Washington to end the hiring standstill.

Worries flared Friday after the release of the worst jobs report since September 2010. Total payrolls were unchanged, the first time since 1945 that the government reported a net job change of zero. The unemployment rate stayed at 9.1 percent.

The dismal news two-day before Labor Day sent stocks plunging. The Dow Jones industrial average fell 253 points, or more than 2 percent.

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Another Bad Week For President Obama Unemployment Numbers Increased Over 400,000 Last Week His job Approval Fall And The Number who support His an economic agenda at 26%

Boy, after this week Obama definitely need to get away. Unemployment numbers rise over 400,0000 for the first time in two weeks. His Job Approval has fallen to 39% for the first time this year. Only 26%  approve  his handling  of the economy.  This comes as the economy outlook look bad JP Morgan Chase  says. From James Pethokoukis Reuters Syndication:

On Wednesday, Economic Forecaster-in-Chief Barack Obama said, “I don’t think we’re in danger of another recession.” Shades of John McCain’s “The fundamentals of our economy are strong.”

On Thursday, the stock market – freaked out by Europe’s spiraling debt crisis and a shockingly weak Philadelphia Fed manufacturing report – plunged 4.5 percent. In an unintentional rejoinder to Obama, investment bank Morgan Stanley opined that the United States was “dangerously close” to falling back into recession.

And it may be about to get a whole lot worse for the Obama 2012 campaign. The White House’s worst-case scenario for the economy on Election Day next year has become Wall Street’s baseline scenario. After looking at a string of weak economic reports and Europe’s growing fear of debt meltdown and contagion, JPMorgan – led by Obama pal Jamie Dimon – has just come out with a politically poisonous forecast.

The megabank now thinks the economy won’t grow much faster over the next 12 months than it did during the first half of this year — and that’s assuming Europe doesn’t go all pear shaped. It sees GDP growth at just 1.5 percent this year, 1.3 percent next year with unemployment at … 9.5 percent heading into the final days of the election season. “The risks of recession are clearly elevated,” the bank said. Here’s its reasoning:

Consumer sentiment has tumbled and household wealth has deteriorated. Survey measures of capital spending intentions have moved lower and the housing market shows little sign of lifting. Small businesses, retailers, builders and manufacturers all report a weaker business environment. Global growth has disappointed and foreign growth forecasts have been taken lower. In response we are lowering our projection for growth, particularly in the quarters around the turn of the year.

The President’s poll numbers continue to slide from Gallup,Inc:

Gallup latest Presidential Poll

A new low of 26% of Americans approve of President Barack Obama’s handling of the economy, down 11 percentage points since Gallup last measured it in mid-May and well below his previous low of 35% in November 2010.

Obama earns similarly low approval for his handling of the federal budget deficit (24%) and creating jobs (29%).

The president fares relatively better on foreign policy matters, with 53% of Americans approving of his handling of terrorism and roughly 4 in 10 approving on foreign affairs and the situation in Afghanistan. Also, 41% approve of Obama on education.

If I was him I either call back Congress in session or  go on a low level vacation  with the family. (not Martha’s Vineyard.)

Hat Tip: Ed Morrissey of Hot Air

and Hugh Hewitt

The Stock Market Wild Ride 420 Points Up Tuesday 512 Points Down Wednesday

On Wednesday, stock markets in Europe and around the world plunged on speculation that France would lose its triple (AAA) credit rating  and fears of a slowing economy worldwide. On Tuesday, The financial markets skyrocket up on Tuesday, after Federal  Reserve Chairman Ben Bernake  said the Federal Reserve will not raise interest rates  and continue it current policy until 2013.    From The Wall Street Journal:

Stock prices tumbled Wednesday, led downward by some of the world’s biggest banks. But bond investors offered a potentially more ominous assessment of prospects for the global economy, pouring money into the safety of U.S. Treasury bonds despite yields that are near their lowest levels in history.

The Dow Jones Industrial Average fell 519.83 points, or 4.62% to 10719.94, more than wiping out the gains posted in Tuesday’s sizable late-day rally. It was the Dow’s fourth triple-digit move in five days and brings its declines since its April peak to more than 16%. The index is less than 500 points away from officially being in a bear market, defined as a decline of 20%.

Asian shares Thursday morning moved lower. Japan’s Nikkei Stock Average fell 1.6%; Australia’s S&P/ASX 200 lost 1.4%; South Korea’s Kospi Composite dropped 1.8% after slumping over 4% at the opening; and New Zealand’s NZX-50 was 0.1% lower.

It marked the fourth day in August that the Dow has closed more than 2% higher or lower. Only one of those sessions, Tuesday’s, was a positive move. In contrast, there were only two days with moves of 2% or more in the first seven months of the year.

The concerns have led to strong demand for Treasurys, despite the downgrade by Standard & Poor’s of the U.S. long-term credit rating last Friday. The trend of falling Treasury yields gained steam following the Fed’s announcement Tuesday that it would keep interest rates “exceptionally low” though the middle of 2013. Yields on 10-year Treasurys, which fall as prices rise, ended the day at 2.145%, near their lowest on record.

The Wall Street has more. Read it!

The Blame Game is On: White House and Democrats Says Tea Party Cause of S&P Downgrade

It ‘s has come to this… Democrats hold the Tea Party responsible for the US credit rating downgrade.  Republicans blames The Democrats for want to raise taxes.  From New York Times:

Representatives of the Republican and Democratic parties went on television on Sunday morning to blame the other side for Standard & Poor’s unprecedented decision to downgrade the credit rating of the United States – a decision that was based largely on a lack of faith in the ability of the political system to forge agreements to reduce the debt.

On the ABC program “This Week,” Gov. Martin O’Malley of Maryland, the chairman of the Democratic Governors Association, said that while he did not agree with the basis for the downgrade, he found it understandable in light of the Republican Party’s refusal to agree to any tax increases to “balance” spending cuts.

“One has to find understandable their pessimism about our inability to come together on the most important issue facing our country, which is how do we create jobs,” he said, referring to analysts at S.& P. “We need a balanced approach and the extremism, the Tea Party obstructionism here in Washington, is keeping us from restoring that balanced approach America has always used of investing in the future, investing in job creation, and also being fiscally responsible at the same time.”

On the same program, however, Senator Jeff Sessions of Alabama, the top Republican on the Senate Budget Committee, said that Democrats were “in denial” about the scope of the debt problem, and suggested a 10 percent “across the board” cut in the budgets of federal departments and agencies. He rejected Democrats’ call for a “balanced” approach that would combine cuts with ending certain tax breaks or raising some tax rates.

H/T: Powerline

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Nightmere Comes to Life Standard and Poors Rating Agency Downgrades US Debt AA Plus!

Breaking News: Standard and Poor one of the major credit rating Agencies  announced late Friday the  US lost it prestigious AAA rating and placed in negative outlook for other downgrade within the next two years. The reason  the debt reduction plan for the US was insufficient.  S&P  stated that the US need to cut 4 Trillion Dollars from debt. The plan that passed on Tuesday only cuts 2.5 Trillion Dollars from the debt. It ‘s seen that the US was not serious  about debt reduction. From Washington Post:

Standard & Poor’s announced Friday night that it has downgraded the United States credit rating for the first time, dealing a huge symbolic blow to the world’s economic superpower in what was a sharply worded critique of the American political system.

Lowering the nation’s rating one-notch below AAA, the credit rating company said “political brinkmanship” in the debate over the debt had made the U.S. government’s ability to manage its finances “less stable, less effective and less predictable.” It said the bi-partisan agreement reached this week to find at least $2.1 trillion in budget savings “fell short” of what was necessary to tame the nation’s debt over time and predicted that leaders would not be likely to achieve more savings later on.

The decision came after a day of furious back-and-forth between the Obama administration and S&P. Government officials fought back hard, arguing that S&P made a flawed analysis of the potential for political agreement and had mathematical errors in its initial report, which was submitted to the Treasury earlier in the day. The company had overstated the U.S. deficit over 10 years by $2 trillion, officials said.

“A judgment flawed by a $2 trillion error speaks for itself,” a Treasury spokesperson said Friday.

Reaction from the markets is unknown. Monday(actually Sunday afternoon when Japan, Hong Kong and Sydney exchanges open first) we will see the markets express their concerns.

Reaction from the politicians will be strong to say the least.  The Tea Party will feel vindicated. Look out  folks we can wonder will interest rates will climb.

The other major credit rating agencies Fitch Ratings and Moody’s Investment Services did not downgrade the US credit ratings although Moody’s  placed the US on negative outlook.

Oh boy its the only August 5th and the month just begun.

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