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Stocks Slump After Obama Rejects Republican Proposal; Cantor: "Seeking Path Forward"
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,
- *BOEHNER LEAVES OBAMA MEETING WITHOUT SPEAKING TO REPORTERS
- *REPUBLICANS LEAVE WHITE HOUSE WITHOUT MAKING STATEMENT
- *OBAMA REJECTS REPUBLICAN PROPOSAL FOR SHORT-TERM PLAN: NYT
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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bought S&P 3x (UPRO) puts at the close anticipating that it wouldn't be this easy. Also held on to my spy puts. Actually some random comment on the board here reminded me of the likelihood that there would be an after-market close collapse that would make Friday (likely) red.
My guess though is that the market doesn't sell too hard tomorrow. We are in peak rumor-ville from tomorrow through Oct 17....the rollercoaster should be pretty intense. Probably straddles and strangles are the way to play it, if you must play.
The path forward....actually isn't forward.
It's down and easy to follow...just let gravity be your guilde.
Republicans must find a way to let Obama have some imagined leadership victory. He is desperate for this as he is facing a legacy of American mushy power, the next logical step down from Hillary's soft power.
The debt ceiling will never be breached because it would trigger a credit event at which point all CDS Contracts would have to pay out. Yes, they paid out on Greece, but the USA triggering a credit event would be a whole lot bigger. A whole lot bigger indeed. It will never happen. Er, I mean it will never happen this year.
Yeah be careful how you word your prediction on the default or the Zerohedge syntax nazi's will give you an evil tongue lashing.
The amplitude of the mechanical resonance of US Fiat and economic system has reached a point of no return and only a matter of time before catestrophic failure.
Wild swings from side to side with each QE and market corruption just increase its width and create a deepening harmonic until it snaps.
Good mechanical analogy--with the amplification juiced by those bank "reserves" levering up the spec trading.
As usual when an event happens, futures quotes are like molasses and jumping around in strange blocks. They will keep this afloat so the Asians push their markets up and then drop it like a hammer once they close. Same as the ramp last night in reverse
Wow, I just got home and checked the Dow. Up 300+++ points. That must mean gold (paper) is down 100+++. Nope. Only 12 bucks down. I may buy the kids some silver coins for Xmas. They like paper more, even the 2 year old lights up for paper.
boy that didn't last long, its the same pump,pump,pump we have seen since 3/2009
It's foggy outside, but the end is in sight.
I can't stop crying......http://www.bloomberg.com/news/print/2013-10-10/foreclosures-surge-in-d-c-area-after-federal-budget-cuts.html
“There is no question that the sequester has had an impact on the economy in Washington,” O’Reilly, whose Washington-based firm advises financial clients, said in a telephone interview. “And against the backdrop of the current shutdown, I would say it would not be a surprise to anyone to see continued softening in this area.”
Professional and business-service employment in Fairfax County, where the Central Intelligence Agency has its Langley headquarters, dropped by 1,500 jobs
“Fairfax County is at risk of continued softening because 35 percent of jobs in the county are directly tied to government employment or indirectly through contractors,” said O’Reilly of Collingwood Group. “We can anticipate federal spending levels likely decreasing further, certainly not increasing.”
Til the Money Runs Out
http://www.youtube.com/watch?v=eHl7HEQt0C4
.
in shades
http://www.youtube.com/watch?v=ZLIU08doRRU
http://www.youtube.com/watch?v=1Q0T39uysRI
Concert extraordinar - Taraf de Haidouks
Just waiting for Yelland to buy up the whole short term debt market. Anyday now...
I'll bet boner agrees with Putin...
Vladimir Putin allegedly said off the record:
"Negotiating with Obama is like playing chess with a pigeon.
The pigeon knocks over all the pieces, shits on the board and
then struts around like it won the game."
Please. In all seriousness, at some point a little respect here for pigeons. President Putin, sir, you're better than that.
Yes Pigeons Can!
Insanity. All of it. In the strictest sense of the word. This is insane.
There will someday be ZH style voting where A single corrupt human piece of waste (or one small group of them) no longer represents the millions who pay for everything.
The complete removal of human filth from leadership roles must launch with power, and soon. Human beings as individual leaders cannot work...try as the Founding Fathers did. If they could not, no one will ever be able to, and unless people unite in a way that forever removes the "ones" who supposedly represent, corruption will always creep in. This whole charade needs to end. We can get to where we no longer need "representatives" who will only and always represent themselves.
As for now, and back to reality, the wanton desire of Amerikans to keep coming back for more abuse by a worthless government is beyond words. "Just give us more of this idiocy, and if you keep doing it, we're warning you! watch out! Because we will only keep coming back for more, forever." - Joe Amerika
Is there a list that exists of reps who have decent credibility. It can't me more than 10 total. 5 most likely.
Forward.
Re: Forward.
My guy isn't so bad really, he's got a nice smile and looks real honest. I bet he'd be fun to have a beer wit.
bammm. See 1 of the 5 already. We're 38% there!
(Math brought to you by Amerricka Knoww! Ejecation)
I figured there was going to be no deal, Boehner knew it to. Repubicans fall further in the shit while the democraps catch a few rays.
Have no idea where to put my money.
What is not in gold and silver is cash in an Aussie bank, plus a few shares in gold/silver minors. Interest rates aren't high, but at least 4% is far better than most other places.
Wish this thing would crash already.
Finally we have a limited government and self-defense military but not for long.
I miss the good-ol-days when I Thought I knw who to trow up on.