Our political leadership sucks. They are Super Bums. Tasked to watch over America, they are failing us. We have been watching for months, and their sense of nobility is no where to be found. A compromise was not reached, and soon we will be hearing the yelling about why one party was to blame over the other. They are all pathetic.
Despite the pathetic behavior, the equity markets did not decline because of them. Today the decline was all Europe. This morning we go word that a Spanish lender was nationalized. The Spanish government back stopped a bank it can not afford to back stop. And so the nationalizations begin.
Tomorrow we will get the GDP number, and it should be a relatively good number. That should give US markets a slight boost, but after that I would look for SP500 puts again.
lack of positive catalysts, I do not see how the market pushes above 1220 without a EU stability fund.
With the pathetic showing of the Super joke Committee, Standard and Poor's (SP) will downgrade the US debt again. This should force selling amongst money market funds, and push the market lower. (If the market does not go down on the SP downgrade, that will be surprising and telling of a bullish reversal for equities. But I am not holding my breath on that low probability scenario.)
update: Minutes after I posted this, the SP says the ratings is not affected. I guess the SP learned not to bite the hand that feeds it or sees America's relative strength compared to the rest of the world. This takes away a potential negative catalyst, but our political leadership are still BUMS.