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Stocks Slump After Obama Rejects Republican Proposal; Cantor: "Seeking Path Forward"

Tyler Durden's picture


UPDATE: S&P Futures recover most of their losses following new reports, denials, and clarifications that Obama did not in fact "reject" but that discussions are and will be ongoing during the night. Most importantly, the meeting was inconclusive, which however seems good enough for stocks which have rebounded to pre-drop levels.

S&P futures are now over 15 points off the day's highs, as it seems equity investors were hoping for a Cumbaya moment after the White House meeting today. However, as Bloomberg reports,


It would seem that Obama's "unconditional surrender or default" position has merely placed the pressure to act back on Boehner's shoulders.



Where did stocks drop to?


Rep. Cantor offers some hope still -   

Majority Leader Cantor: White House meeting useful, 'we expect further conversations tonight'


It is clear, it would appear, that President Obama is sticking to his no-negotiation tactic (that Harry Reid confirmed this afternoon) and nothing will be done until government is re-opened...

For some depth on where we are in that debacle, here is NYTimes excellent inforgraphic:

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Thu, 10/10/2013 - 18:21 | 4042990 slaughterer
slaughterer's picture

Ooops!  Guess Ozero did not get the memo from Schumer.   And how many leveraged their long index positions today hoping to wake up to another 20 point gap up?  Guess Intractive Brokers is going to need to hike margin requirements yet again.  

Thu, 10/10/2013 - 18:23 | 4043004 The Gooch
The Gooch's picture

These motherfuckers are TRADING THE SHIT OUT OF THIS.

Thu, 10/10/2013 - 18:26 | 4043022 Popo
Popo's picture

If Boehner had balls he'd call a recess and go home. That would send the appropriate message. He could also invite Obama to jump on a plane and come visit when he's ready to make a deal.

Thu, 10/10/2013 - 18:29 | 4043030 Cult_of_Reason
Cult_of_Reason's picture

Huge IF

John Boehner has no balls.

The market should give back at least a half, 40/2=20 S&P points.

Thu, 10/10/2013 - 18:29 | 4043041 SheepDog-One
SheepDog-One's picture

Or, that's just what they wanted everyone to think....who knows?

Thu, 10/10/2013 - 18:30 | 4043054 Cult_of_Reason
Cult_of_Reason's picture

Last time Boehner left the WH without speaking to reporters, the bids evaporated and futures plunged by ~50 points. 

Thu, 10/10/2013 - 18:35 | 4043061 Zer0head
Zer0head's picture

ya Boehner's  got balls alright

tiny little orange ones

and you know what they say about a guy with tiny orange balls



Thu, 10/10/2013 - 18:40 | 4043080 Global Hunter
Global Hunter's picture

and you know what they say about a guy with tiny orange balls

He feels the pinch when his tiny orange balls are in an NSA vice just like a guy with normal balls would?

Thu, 10/10/2013 - 18:49 | 4043102 The Alarmist
The Alarmist's picture

Sorry, but this is just too much like that scene in Blazing Saddles where the Sheriff takes himself hostage to get out of a jam.

McConnell: Hold it men—he's not bluffing! [all but Ted Cruz drop their guns]
Boehner: Listen to him, men; he's just crazy enough to do it!

Thu, 10/10/2013 - 19:09 | 4043161 Pegasus Muse
Pegasus Muse's picture

“I will not negotiate” ---Barack Hussein O’Butthead




Thu, 10/10/2013 - 19:11 | 4043172 buyingsterling
buyingsterling's picture

Breaking news: Latest statement from Boehner:

"The president has rejected our proposal to extend the debt ceiling for six weeks, which would have given us some additional time to work out our differences. President Obama has exempted corporations, unions, even the US congress and congressional staff from the impact of Obamacare. Only responsible taxpayers - those Americans who pay all the bills - will be required to abide by the legislation this year. Millions will be forced to forego insurance and pay stiff penalties - the requirements of Obamacare have doubled and tripled the premiums for many taxpayers who are already stretched to the limit. And the president's health exchanges are a nightmare for all Americans - the sites don't work well, the information provided is both invasive and at risk of exploitation by hackers and identity thieves, and when people are actually able to get a quote, they are discovering that premiums are outrageous and deductibles are generally $10,000 or more. The Obama economy has left very few Americans with an extra $10,000 that they can spend on Obamacare. The entire law needs to be re-evaluated before it bankrupts the middle class. When the president is ready to discuss wholesale changes in this economy-wrecking legislation, we will be ready to talk. In the interim, we would like to again offer our proposal for a six week extension on the debt ceiling. In six weeks, Americans will be familiar enough with Obamacare that they will demand it be changed or scrapped altogether. We suspect that this is the very reason why the President wants all or nothing, and is refusing to negotiate."

Or maybe he didn't say that, because republicans are inarticulate cowards.

Thu, 10/10/2013 - 19:33 | 4043242 max2205
max2205's picture

Abide ...

Thu, 10/10/2013 - 19:54 | 4043288 locklimit
locklimit's picture

Can politicians buy S&P futures contracts??  If so they should all be billionaires...

Thu, 10/10/2013 - 20:24 | 4043377 anyways
anyways's picture

wow, as i read this i had my fingers on the sell button... until i reached the end ;-)

Thu, 10/10/2013 - 18:38 | 4043082 Kirk2NCC1701
Kirk2NCC1701's picture

Errata:  Boehner's got blue balls.

Thu, 10/10/2013 - 18:35 | 4043057 Zer0head
Zer0head's picture

worth repeating

These motherfuckers are TRADING THE SHIT OUT OF THIS.


Thu, 10/10/2013 - 19:04 | 4043147 prains
prains's picture

why feed the beast, let it eat itself

Thu, 10/10/2013 - 18:29 | 4043046 FL_Conservative
FL_Conservative's picture

....and he has NO negotiation skills.


Its a shame we have to rely on incompetents to get the job done.

Thu, 10/10/2013 - 18:33 | 4043058 smlbizman
smlbizman's picture

boner needs to make the tag to mr. putin...get the plantation back in order.....

Thu, 10/10/2013 - 18:53 | 4043112 The Alarmist
The Alarmist's picture

Chuck Norris would make Putin his bitch.

Thu, 10/10/2013 - 18:55 | 4043116 stormsailor
stormsailor's picture

andrew jackson made both of them look like meterosexuals,  he had 3 musketballs in him when he was president


Thu, 10/10/2013 - 19:41 | 4043259 StacksOnStacks
StacksOnStacks's picture

And if I do recall correctly, he wanted to end the Fed.

Thu, 10/10/2013 - 20:10 | 4043341 Doyle Hargraves
Doyle Hargraves's picture

He DID end the Fed. Where the hell is Old Hickory when you need him?!

Thu, 10/10/2013 - 21:35 | 4043620 franzpick
franzpick's picture

He's in Hawaii broadcasting with podcasts weeknights from WhatReallyHappened.com and offers himself as a 2016 presidential candidate: Michael Rivero.

Thu, 10/10/2013 - 18:37 | 4043077 I need Another Beer
I need Another Beer's picture

My Rep has basically said FU AA, no compromise. My sentiments exactly. I hate to say it but most AA's have been written off 4 me as in fast moving projectiles first, questions after the fact.

Thu, 10/10/2013 - 19:49 | 4043282 alphamentalist
alphamentalist's picture

All Boehner, no balls

Thu, 10/10/2013 - 18:28 | 4043033 optimator
optimator's picture

it sure is tough to predict the future, but not if you're the ones making that future.

Thu, 10/10/2013 - 18:28 | 4043036 Renewable Life
Renewable Life's picture

Bammer and the Boyz are the Casino, Boner is the snot nose kid thinking he's going to make a run, 6 weeks I'll call you that bullshit an raise you a fucking default, there now what????

GOP amateur hour at the Improve continues..............

Thu, 10/10/2013 - 18:40 | 4043083 The Shootist
The Shootist's picture

House controls the purse, period. Zero's too stupid to play ball. And too stupid to understand that the whole country comprehends he's lying.

He could well blink like on Syria.

Thu, 10/10/2013 - 20:06 | 4043314 Renewable Life
Renewable Life's picture

Keep telling yourself, these fractional banking loving, Ponzi Scheme worshipping, Wall Street pimping, GOP cocksuckers are suddenly going to stand up to "the spending, borrowing, and printing", when that's exactly what made them millionaire fucking politicians, in the first place!!!

Geeeezus, wake up, nobody's fucking blinking here, but Boner and his Kenyesian brothers!!!

And BTW if you think some lame ass 6 week reprieve is a deal worth even talking about, your fooling yourself, all this does is get ALL these fucking coward encumbents past the Nov elections without ANYONE getting hurt, and puts us right back here before Christmas, for another round of BS, similar if not identical to this week!!

Thu, 10/10/2013 - 19:22 | 4043199 Phat Stax
Phat Stax's picture

What a bunch of dumbasses - the break through third level resistance was a classic (short-lived) throw-over.

Thu, 10/10/2013 - 19:13 | 4043178 skree
skree's picture

I swear I've seen this show before.....

Thu, 10/10/2013 - 19:38 | 4043253 gatorengineer
gatorengineer's picture

Yeah, isnt this the part where Boner gets bitch slapped by the street smart Negro, and cries like a Bitch?

Thu, 10/10/2013 - 18:19 | 4042991 qussl3
qussl3's picture

He already made it damn clear short term was unacceptable, wonder who the idiots were chasing this ramp.

Thu, 10/10/2013 - 18:38 | 4043073 Cdad
Cdad's picture

From day to day, I'm not sure who the idiots are that are chasing the endless and mind-numbingly stupid equity ramps...but...I know it isn't the people who understand who President Zero is...and just what he wants to do to this country.  
And by that I mean...it isn't the conspiracy minded folk chasing the equity ramps...the ones who understand that President Zero would love...just love to see the US default on its debt. 

So...for all of you confused by "I refuse to negotiate"...consider yourself edjamacated. 

Thu, 10/10/2013 - 18:21 | 4042992 johngaltfla
johngaltfla's picture

The Stock Market Crash of October 18, 2013


See, I told you so.....it's going to get ugly in the next week!

Thu, 10/10/2013 - 18:25 | 4043029 anyways
anyways's picture

nice Comrade ;-)

Thu, 10/10/2013 - 19:04 | 4043145 The Shootist
The Shootist's picture

TPTB will blame and destroy the tea-party? Interesting patsy theory, but I doubt they could convince any Libertarians or tea party members that a crash is their fault. Thus, these liberty loving factions would continue growing.

Thu, 10/10/2013 - 19:14 | 4043179 johngaltfla
johngaltfla's picture

The American people as a group are generally dumb asses.

If the Keynanfuhrer tells them to believe it was the Tea Party's fault, they will.

It only gets worse when Boehner sells them out in the weeks ahead.

Thu, 10/10/2013 - 19:18 | 4043183 The Shootist
The Shootist's picture

Yeah, but I think the coalition is too big to be harmed much.

Thu, 10/10/2013 - 19:21 | 4043204 johngaltfla
johngaltfla's picture

Better read this one also as the SA thought the same thing in June 1934....


America’s Night of the Long Knives May Hit the Tea Party/Patriot Movement Any Day Now!

Thu, 10/10/2013 - 19:33 | 4043240 The Gooch
Thu, 10/10/2013 - 19:39 | 4043257 johngaltfla
johngaltfla's picture

Love that movie. Too bad the GOP can only say "Say hello to my little friend" and right after that Boehner unzips his fly....

Thu, 10/10/2013 - 20:06 | 4043331 rtalcott
rtalcott's picture

Yeah BUT....AH was in a serious bind....the Army was saying OK time for you to deliver YOUR part of the bargain.

Thu, 10/10/2013 - 19:28 | 4043227 runningman18
runningman18's picture

Government Shutdown: The Next Step In The Collapse Of The Dollar?


Excellent article, and correct so far.

Thu, 10/10/2013 - 19:21 | 4043196 McMolotov
McMolotov's picture

We desperately need a collapse so this country can break up regionally into four or five different nations, like that Russian dude predicted back in the '90s.

For the time being, though, we're stuck with a bunch of prissy ass fiddling Neros as "leaders." They see the sparks all around them, and they're just trying to buy some more time so they can get out of Rome before it all burns and gets blamed on them.

Fuck all of 'em.

Thu, 10/10/2013 - 19:29 | 4043215 Australian Economist
Australian Economist's picture

I'm glad I sold all my stocks months ago. Although I've missed out on a few percentage gains since then the situation is far too unstable.


Even if the Fed keeps printing I think we're coming to the end game soon. Oct 18th, 6 months, 2 years? I don't know, but it will happen.

Thu, 10/10/2013 - 18:20 | 4042994 uncle_vito
uncle_vito's picture

You knew this was going to happen.   Dumb market

Thu, 10/10/2013 - 18:31 | 4043020 johngaltfla
johngaltfla's picture

Dumb Market.


Nah, the CNBCFBNBBGCNN propagandists did their jobs. The ramp job was a classic Plunger Protection Team low volume on the futures to move the cash maneuver. Care to wager if GSCJPMWFCBAC, etc. all have S&P put options some 20-30%  below the current level and waiting to drive the price way, way, lower so as to clean out the terminally stupid?

Thu, 10/10/2013 - 18:30 | 4043052 Landrew
Landrew's picture

I bought the BAC @ the money Nov. puts around noon knowing most or all of this ramp would evaporate overnight. 

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