White House Was Not "Expecting A Stock Rebound" This Morning, "They Were Bracing For A Negative Market Reaction"
When asked by Tom Keene about the "modest recovery" in stocks earlier this morning (which as of this post are unchanged), Bloomberg TV's Julianna Goldman responds quite simply: "that's not what White House officials were expecting or necessarily wanting this morning. They were all bracing for some negative market reaction that's going to be the fire that's alight under everyone."
From Bloomberg TV's "White House Expects Market Panic to Spark Deal":
In other words, just like two weeks ago when Obama told CNBC that Wall Street "should be concerned", the president is hoping to preempt a market crash which in his opinion is the most immediate catalyst for a deal. Sadly, Obama has once again forgotten that the White House hasn't been responsible for what the market (or the economy) does since 2009, and the only man, and shortly woman, in charge of the US economy, or rather the Russell 2000, resides in the Marriner Eccles building. And so far, Bernanke has given the all clear to buy everything, no matter what. After all, any drop will only lead to even more QE!
As to whether this lack of a "lit fire" removes any impetus on the side of the republicans to act, well yes. So with just over two days to go until October 17, Bernanke is now actively engaging in a policy that outright counters what Obama is trying to accomplish: perhaps the White House should also work on its forward guidance language?
The question is not whether Boehner will blink regardless, but how soon.
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