Advance Look At This Week's Key Political Events

Three things in life are certain: death, taxes, and political theater in Washington. Goldman summarizes: A holiday today, but a busy week starting tomorrow with passage of currency legislation, consideration and likely passage of bilateral trade deals, consideration of the President's jobs legislation, the proposed Volcker Rule, and continued private meetings of the fiscal "super committee" (no public meetings scheduled yet for this week).

Monday, October 10

• Columbus Day Holiday

Tuesday, October 11

• Currency legislation. The Senate likely to pass currency legislation, after two successful procedural votes last week.
• American Jobs Act. Following Senate likely passage of the currency legislation, the Senate is likely
• Financial Stability Oversight Council meets...
• Volcker rule. FDIC Board meets on the Volcker Rule proposed rule and to approve revised projections of Deposit Insurance Fund losses.

Wednesday, October 12

• House passes trade agreements with Columbia, Panama, and South Korea? The House is likely to pass all three agreements, with the final vote likely occuring on Wednesday.
• Hearing on tax reform implications for capital formation and corporate investment. In addition to longer-term oriented issues, this hearing might also focus on near term issues like proposals to allow for a temporary tax holiday for repatriation of profits from overseas. In the Senate Finance Committee.
• House Financial Services Committee votes on capital stock increases for IBRD, IADB, EBRD, and ADB.  The legislation is called “Supporting Economic and National Security by Maintaining U.S. Leadership in Multilateral Development Banks Act”
• Derivatives regulation. The House Agriculture Committee will review legislative proposals to modify Title VII of the Dodd-Frank Act, which covers derivatives regulation.
• National Infrastructure Bank.  The House Transportation Committee’s title sums up the committee majority’s view: “National Infrastructure Bank: More Bureaucracy and More Red Tape.”
• Federal Home Loan Banks.  The House Financial Services Committee will review the state of the FHLB system, which came under new regulation in 2008 but hasn’t seen the same level of legislative focus as the GSEs or the FHA. 
• SEC open meeting on Volcker Rule…

Thursday, October 13

• State, Treasury, and Commerce testify on Iran sanctions.  In the Senate Banking Committee.
• Industry reps testify on international implications of housing finance reform. In the House Financial Services Committee.
  Friday, October 14
• Derivatives regulation. The House Financial Services Committee will review legislative proposals to modify Title VII of the Dodd-Frank Act, which covers derivatives regulation, similar to the House Ag Committee

Friday, October 14

• Derivatives regulation. The House Financial Services Committee will review legislative proposals to modify Title VII of the Dodd-Frank Act, which covers derivatives regulation, similar to the House Ag Committee

Comments

[SheepDog-One]

'Consideration of the 'Presidents' job legislation'

The very fact that we're discussing 'legislation' to deal with americans working or not should in itself be confirmation we're all commie now.

Besides, CNBS is running headlines theyve confirmed there is no recession, and jobs are just fine. So whats the need for any legislation (free gift of money) at all?

[LeonardoFibonacci]

But Bloomberg is saying US is avoiding recession.

[SheepDog-One]

Just a play on words, indeed we're not heading into recession at all, we have been mired in a 3 year depression.

[ivars]

Based on this "analysis" : Greece debt and time squeeze ratio I could not come with any reason fro the squeeze as the intuitive one that Greece has used national debt money AFTER the crisis to accelerate increase in Athens General stock prices. They were way ahead of FED in creating "wealth effect".

Greeks have always been ingenious people with lot of ideas. Now, the consequence of doing it so fast and on such a scale using debt has accelerated timeline for Greece as compared to the USA and most other countries 3 times- -that is , their stock market was already in "recovery" in October 2009 while the rest of the Europe and USA reached that level with their SLOW stimulus in July 2011.

See here comparison between Greece and USA stock markets where the abnormally speedy recovery of Greece's indexes is obvious:

Greece stock markets recovered with amazing speed

To cut it short, there are not many European countries in dire shape, there is JUST GREECE and then others which can be graduated between themselves.

So the prediction: Given the facts that:

1) EUR/USD rate will grow till the end of October /middle November as predicted here to 1,40: EURUSD, then drop back to 1,32 which is the level with Greece already priced in; (BTW, on the chart the big letters should read EUR/USD, not USD/EUR- a typo.

2) There are new companies/countries in need for artificial life support ( Dexia comes first);

3) Merkel and Sarkozy have a plan TODAY for Europe debt situation but details will be worked out by the end of OCTOBER;

Greece will default, leave Eurozone and return to drachma (GRD)  during H1 of November 2011.

Could not figure out drachma to EUR ratio easily at this moment, but I guess it will be around 1000GRD/EUR. Quite soon, as EUR problems expand even without Greece, in March 2012 exchange rate will be 700 GRD/EUR, then in July 2012, around 840 GRD/EUR, than again down to 620-700 GRD/EUR. From then on, most likely, GRD and EUR rate will be relatively stable untill 2013.

[PWD Lover]

Tuesday's GOP presidential debate on economic issues should be good for a laugh.  7pm on Bloomberg TV/radio.

[Georgesblog]

But can they make the Bad Man stop? Of course not. They're in n bed with the Bad Man.