Confounding market does nothing to solve shutdown
The impact of 2 million furloughed federal employees isn't quite like Superstorm Sandy. It's more like Hurricane Cruz, and there's no making up for lost business.
This has become a "you must be kidding me" market. Usually I am glued to the close as we prepare "Mad Money" each night. I never like to feel away from what's going on, because it is possible that I'll have to rip up the top of the show if things get wild. You can't afford to have a show that doesn't address a big move.
But Tuesday I did the show from outside the NYSE instead of in Englewood Cliffs, N.J. I was without wireless and couldn't follow things, so I was stung by the last-minute close. I had been working my Washington, D.C., channels -- which, I admit, are meager compared with others' -- and could come up only with negatives. In other words, nothing was expected to happen in the next 48 hours. So I was thinking this market should stay down at the close, be subdued, without any new information.
Nope. It ran.
I wanted to scream at the market, "What do you know that the rest of us don?" But now we see the answer. Nothing. Nothing at all.
I continue to think there are risks to the numbers that come from the vast confusion that a shutdown engenders. Businesspeople plan. They like to make moves based on some stability.
But Congress is providing a fabulous excuse to do nothing.
I was gratified when Duncan Niederauer, the CEO of NYSE Euronext (NYX), said he didn't think the initial public offering process would be impeded, because the queue is huge. But then I figured, who knows? Maybe in order to prove a political point, someone from the executive branch will say the Securities and Exchange Commission should only work on enforcement, and not corporate finance. Who's to say no to that?
With the lack of any appropriations bills for years, we really have no idea who has money and who doesn't. It seems like the shutdown is designed only to aggravate the highest possible of people who can aggravated.
In real life, though, the ripple effect of 2 million federal employees being taken out of the spending loop isn't all that different from a hurricane taking out a part of the country -- except that we don't have insurance funds to rebuild and boost the economy. This isn't Superstorm Sandy, it's Hurricane Cruz, and there's no real making up for lost business.
That's really the issue here. Lawmakers won't react until there is so much pain that they fear for their jobs. When you have a market that rallies, like what happened Tuesday, they feel as if they aren't hurting anyone. If you have a market that goes down, then you have businesspeople who visit and talk about havoc, and you have constituents who are struggling to put dinner on the plates. Maybe then they would start dealing?
One thing is for certain: The buyers at the bell? They have left the building. They are being replaced by sellers who had their chance and didn't take it, and now they are thrilled to get the prices from the low of Tuesday's trading.
At the time of publication, Action Alerts PLUS, which Cramer co-manages as a charitable trust, had no positions in the securities mentioned.
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Anyone who is "having problems" already because of the Shutdown; Have had problems all their lives.
Mostly of their own making...
It takes two to tango and liberals have to accept some of the blame here. Did we not hear some of them caving on ObamaCare? Did we not hear the Unions caving on support for ObamaCare.? Did the polls not show support for ObamaCare slipping. That emboldened the people against It. FESS UP.
Barry I'm aware of "tax rates" in some of the Foreign Countries...But many get decent services besides just Healthcare...And other cost as petrol or driving, most don't go very far or take public transportation or bikes and motorbikes.
But those rates have also driven a lot of Commerce Underground or under the table...
Or others, particularly, the Rich and people with tax attorneys or good CPAs to find ways to deflect and defray from paying taxes...A big part of the problem with say, Greece..??
Now the same is starting to get worst here and has been for probably better then 20 years..?
TOO MANY people on the dole...
Too many doing work under the table or off the books...
And too many Rich, really not paying a FAIR Share...Hiding and write offs.
Our tax rates are not cheap here, if you take all things considered; Any taxes or fees that go to any Government controlling entity..
If you are anything but homeless in the U.S., you pay through the azz..
I've calculated it several times over the years, and it is between 55-60% of most people's income.
People will say nothing to worry about it, until it Actually affects them. Then those same folks will never shut the heck up about it. They quickly change from hey look at me, to the biggest whiners you will ever hear from. They change from get the Government out to why didn't the Government do something about it. What hasn't impacted you now doesn't mean you won't be severly impacted later in ways you never imagined.
ROME:Just ignore Barry.Everyday he just whines and cries how unfair life is and how
poor people get phones and he can`t afford one.He`s stuck in NY and always says
how his life sucks.Somehow he thought Romney would be his savior.He lost because
most Americans were smarter than to fall for MR.Garage lift man who only cared about the 1%.
BS. You have to eat you have to pay bills. And you know Obo will be buying more votes for his friends by giving all the workers retroactive pay. The unions are already pushing it.
Barry, I love this country.If you like Russia so much,I`ll tell you what I`ll do.Before you move
there I`ll send you a Bolshevik hat for those cold winters.I`ll toast you in January from my
patio when I`ll drinking my Harvey Wallbangers and enjoying my pension and the peace and
prosperity Obama has brought us.VIVA AMERICA !
There is no provision for the holding of referendums at the federal level in the United States, which the Constitution does not provide for. A constitutional amendment would be required to allow it.
So you see IDK short of politicans changing it or a revolution there is no provision to change it. We get to vote for them and the things they want us to vote on. You don't see them jumping up and down asking us to vote on how much money we want to pay them or if we require them to be on the new ACA with us.
This is a transcript of the 1971 conversation between President Richard Nixon and John D. Ehrlichman that led to the HMO act of 1973:
John D. Ehrlichman: “On the … on the health business …”
President Nixon: “Yeah.”
Ehrlichman: “… we have now narrowed down the vice president’s problems on this thing to one issue and that is whether we should include these health maintenance organizations like Edgar Kaiser’s Permanente thing. The vice president just cannot see it. We tried 15 ways from Friday to explain it to him and then help him to understand it. He finally says, ‘Well, I don’t think they’ll work, but if the President thinks it’s a good idea, I’ll support him a hundred percent.’”
President Nixon: “Well, what’s … what’s the judgment?”
Ehrlichman: “Well, everybody else’s judgment very strongly is that we go with it.”
President Nixon: “All right.”
Ehrlichman: “And, uh, uh, he’s the one holdout that we have in the whole office.”
President Nixon: “Say that I … I … I’d tell him I have doubts about it, but I think that it’s, uh, now let me ask you, now you give me your judgment. You know I’m not too keen on any of these damn medical programs.”
Ehrlichman: “This, uh, let me, let me tell you how I am …”
President Nixon: [Unclear.]
Ehrlichman: “This … this is a …”
President Nixon: “I don’t [unclear] …”
Ehrlichman: “… private enterprise one.”
President Nixon: “Well, that appeals to me.”
Ehrlichman: “Edgar Kaiser is running his Permanente deal for profit. And the reason that he can … the reason he can do it … I had Edgar Kaiser come in … talk to me about this and I went into it in some depth. All the incentives are toward less medical care, because …”
President Nixon: [Unclear.]
Ehrlichman: “… the less care they give them, the more money they make.”
President Nixon: “Fine.” [Unclear.]
Ehrlichman: [Unclear] “… and the incentives run the right way.”
President Nixon: “Not bad.”
[Source: University of Virginia Check - February 17, 1971, 5:26 pm - 5:53 pm, Oval Office Conversation 450-23. Look for: tape rmn_e450c.]
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