The clean debt ceiling bill has just passed the House where it got the required majority in a 221 to 201 final vote, with just 28 Republicans voting Yea (and 199 voting Nay) - a vote that has made history with the fewest number of votes from a majority on a bill that passed the House since 1991. It also means means that with a Senate passage assured, the US can now spend away until March 15, 2015. The final breakdown:
- GOP: Yea - 28; Nay -199
- DEM: Yea - 193; Nay -2
- Total: Yea - 221; Nay - 201
Considering that the vast majority of Republicans voted against John Boehner's latest "plan" to do the Democrats' work for them, and pass a clean debt ceiling, perhaps it is time to look for a speaker who represents the interests of more than just a tiny fraction of the party... and the Democrats of course.
"Markets were over-priced coming into 2014," warns Sam Zell (noting that he does not believe in the Fed's wealth effect perspective on market-growth helping buying and selling decisions in the real economy), but while he sees a benign outlook for residential real estate, among his biggest concerns are "half-assed" Obamacare's "deleterious effect on the USA" and its "need to be radically changed." Supportive of Carl Icahn and his 'capitalist activism', Zell adds rather frankly that he believes Tom Perkins was correct about the "the 1%... for political convenience," and reminds Bloomberg TV's Betty Liu that "the politics of envy, the politics of class warfare are what has separated America from many parts of the rest of the world," until now.
The rise in equities does not mean stocks "buy" more commodities in the real world - they buy less.
Bipartisan Budget Deal Reached; No Extension Of Unemployment Benefits Means Unemployment Rate Set To... PlungeSubmitted by Tyler Durden on 12/10/2013 19:01 -0400
Moments ago, news hit that democrat negotiators Patty Murray, and republican Paul Ryan reached a bipartisan deal to ease the automatic budget cuts by $60b. The deal calls for auctioning of govt airwaves, increased premiums for pensions backed by PBGC, a congressional aide told Bloomberg’s Heidi Przybyla. A press conference will be held at 6pm to unveil the bipartisan budget agreement, according to e-mailed statement. As a result, a January 15 government shutdown will be avoided. The agreement would require federal workers to contribute more to their pensions, increase premiums on companies whose pension plans are insured by the federal government and increase security fees paid by airline travelers.
And as a result of the implicit $5 billion a month fiscal boost, a near-term modest taper is now even more likely.
The only way to keep the status quo from imploding is to banish common-sense.
With A Final 285-144 Vote, Mission "Raise The Debt Ceiling" Is Accomplished: See You All Again In FebruarySubmitted by Tyler Durden on 10/16/2013 22:19 -0400
And so, in the proverbial 11th hour, or technically 10th hour and 10th minute before the midnight of the X-Date, the House gets the necessary 216 votes to pass the Senate bill to raise the debt ceiling, and in a final 285-144 tally, in which 87 Republicans voted yea to 144 GOP noes as all 198 Democrats vote yea, has agreed to restore funding. Next up: the BLS random number generator starts cranking again and informing everyone in just how sorry a state the economy finds itself, which of course is bullish for stocks because it means that the taper is indefinitely delayed, potentially until June 2014. Also next up, as the emergency Treasury measures are netted out against the new debt limit, it means that once the new Daily Treasury Statement hits, the total US Federal debt will be just at, or over $17 trillion. Rejoice.
Senate Majority Leader Harry Reid and Senate Minority Leader Mitch McConnell will soon announce an agreement to reopen the government and avert default on U.S. debt, Politico reports, according to several sources familiar with the talks. Here is what that "stunning reversal for the speaker" deal looks like. In short: the can has been kicked for three months, to early February.
Curious why algos suddenly are buying because other algos are buying because other algos are buying, pushing the S&P higher by 10 point in virtually no time? Simple. It appears at least one vacuum tube decided to scan the news archive, and fell upon the Politico story from 7 AM Eastern which said that the Republicans and Democrats had met in a secret meeting.
David Stockman, author of The Great Deformation, summarizes the last quarter century thus: What has been growing is the wealth of the rich, the remit of the state, the girth of Wall Street, the debt burden of the people, the prosperity of the beltway and the sway of the three great branches of government - that is, the warfare state, the welfare state and the central bank...
What is flailing is the vast expanse of the Main Street economy where the great majority have experienced stagnant living standards, rising job insecurity, failure to accumulate material savings, rapidly approach old age and the certainty of a Hobbesian future where, inexorably, taxes will rise and social benefits will be cut...
He calls this condition "Sundown in America".
Nancy Pelosi tried hard this evening (in the post WH meeting presser) to position the Democrats in order to disavow the inevitable but now Bloomberg is reporting that:
*HOUSE REPUBLICAN PLAN WOULD LINK SHUTDOWN, DEBT-LIMIT FIGHTS
House Republican leaders plan to bring up a measure to raise the U.S. debt-limit as soon as next week as part of a new attempt to force President Barack Obama to negotiate on the budget by merging the disputes over ending the government shutdown and raising the debt ceiling into one fiscal fight. This is not what most sell-side strategists expected as a base-case; in fact it is close to a worst-case for many - especially given Obama's apparent unwillingness to negotiate.
Would Obama push his pals off a cliff to get a deal?
Here are six things to ponder this weekend:
1. Inflation Debate Continues
2. The Obamacare Nightmare
3. The Disconnect Between "Main Street" and "Wall Street"
4. Payroll Number Become Even More Manipulated
5. Congress Living The High Life At The Taxpayers Expense
6. What If The "Fear Trade" Bubbles Up?
If you want to live the high life, you don't have to become a rap star, a professional athlete or a Wall Street banker. All it really takes is winning an election. Right now, more than half of all the members of Congress are millionaires, and most of them leave "public service" far wealthier than when they entered it. Since most of them have so much money, you would think that they would be willing to do a little "belt-tightening" for the sake of the American people. After all, things are supposedly "extremely tight" in Washington D.C. right now. In fact, just the other day Nancy Pelosi insisted that there were "no more cuts to make" to the federal budget. But even as they claim that things are so tough right now, our politicians continue to live the high life at the expense of U.S. taxpayers.
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Hi, I’m General Keith Alexander, coming to you from the flight deck of the starship...
The U.S. House is now in one hour of debate and then will vote on a temporary funding bill to keep the federal government running after September 30. The continuing resolution would fund the federal government at current sequester levels of $986.3 billion through December 15 and defund the Affordable Care Act. As CSPAN notes, following Speaker Boehner's proposal (to vote on this CR and whether to raise the debt ceiling next next week), Minority leader Nancy Pelosi issued a statement claiming that the House GOP was "prepared to shut down the government" to block President Obama's signature health law. At a press briefing on Thursday, Senate Majority Leader Harry Reid (D-NV) told reporters, "Any House bill that defunds Obamacare is dead." Let the fireworks begin...