Dow Down Over 700 Points Since Debt Deal Passed

During the debt debate the talking point from the left was that we had to increase the debt ceiling in order to bring stability back to the markets. Well the debt deal is done, it’s been signed by the President and the way has been cleared to create $2.4 trillion in additional debt, and yet the Dow Jones Industrial Average keeps tanking.

You can see a full history at the link, but as of the time I write this the Dow is down 446.61 points today alone.

And what’s funny is that already the left’s talking point has shifted. Now it’s not the debt cap that was the problem. Now it’s the Republican spending cuts included in the debt deal that are hurting the economy.

That would be the spending cuts that haven’t even been decided, let alone implemented, yet. The spending cuts the bulk of which won’t happen until years from now.

You just can’t make this stuff up.

Rob Port is the editor of SayAnythingBlog.com. In 2011 he was a finalist for the Watch Dog of the Year from the Sam Adams Alliance and winner of the Americans For Prosperity Award for Online Excellence. In 2013 the Washington Post named SAB one of the nation's top state-based political blogs, and named Rob one of the state's best political reporters. He writes a weekly column for several North Dakota newspapers, and also serves as a policy fellow for the North Dakota Policy Council.

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  • Bat One

    The distractions of the debt ceiling debate are over.  So  too is the Fed’s QE-2 program.  So its back to fundamentals, and what the market see, looking ahead, it doesn’t like.  The US economy is at a standstill… and that’s putting it charitably.  Check the fall in gold, silver, copper, and oil prices.  Unemployment is still, officially, above 9% and tomorrow’s BLS report isn’t going to be reason for optimism.  The Eurozone is crumbling under the weight of social Democratic policies that are financially unsustainable.

    And worst of all, Barack Obama is running for reelection.

  • stan25

    As of this posting, the Dow is down almost 500 points on today’s trading. That is a 5% drop in just today’s session. Probably go down even further tomorrow.

  • syantiss

    Italy and Spain both halted their bond auctions. Italy closed their version of Wall Street on market panic stock sales. Japan printed 500B Yen last night to counter the Sweed’s inflationary print. Gold and Silver both swung wildly entering and leaving the Chinese markets for the last two days, which is interesting considering China ties their dollar to ours… Meaning the US Dollar and the Euro are devaluing before our eyes and not in the paint drying fashion of the last 100 years.

    You may well be looking at the best opportunity to buy Gold in the next few years.

  • mickey_moussaoui

    You can thank Democrats for this global crisis. Democrats(Frank and Dodd) meddled with the home loan process forcing the banks to lower their standards. Then the Banks sold those junk loans all over the globe. When the bubble burst the entire world economy got stuck with the bad paper. Thank a Democrat.

  • http://realitybasedbob.sayanythingblog.com/ realitybasedbob

    The gop double dip is coming on strong.

    When you look at this final agreement that we came to with the White House, I got 98% of what I wanted. I’m pretty happy.
    House Speaker John Boehner (R-OH)

    • InvestSmart

      You are a dishonest fool.  What is your real agenda?  Anyone with half a brain knows that this economy is a direct result of 2 years of Democrats passing, and Obama signing anything they wanted.  Democrats own this economy and it is a disaster for America.

      • Hannitized, Proofs obsession

        Yes, we know that people with half a brain believe this.  That’s why we listen to people with a full one.

        • InvestSmart

          You are perfect proof, you never make sense but continually make a fool of yourself.  You completely discredit yourself with your own words.

          • syantiss

            A man’s gotta have a hobby…

  • LastBestHope

    “I can’t tell you how many people I spoke to today that had that same, distant stare that I saw in the September to December 2008 period,” William O’Donnell, head of U.S. Treasury strategy at RBS Securities, wrote in a report. “It’s that peer-into-the-unknown look that’s quizzical and confounded.”
     
    http://hosted.ap.org/dynamic/stories/U/US_CREDIT_MARKETS?SITE=AP

    • LastBestHope

      This IS the Obama effect. Investors are now very sure that no one with the slightest clue about how capitalism succeeds…..works for Obama.

  • WOOF

    i don’t understand why everybody here are not sovereign fund managers.

    Finance guys closed their positions and went to the Hamptons Friday.

    With everybody on the beach and no one buying the machines took over,
    sold the markets and went into bonds.

    • InvestSmart

      They must have left on Monday.  This has been brewing for some time, employment is THE key and Obama Care, Dodd/Frank and other actions have killed employment growth and increased job losses.

      This will continue until major changes are made.

    • Bat One

      I sold off and went to cash 2 weeks ago.  There’ll be some great, long-term buying opportunities down the road.

      • robert108

        Liquidity preference is the smart play under obama.

        • syantiss

          I so wish you had a better grasp of economics… And weren’t so caught up on the office holder…

  • Brent

    Well, I guess if you need a new nemesis and you can no longer blame Eastasia, then immediately start blaming Eurasia.

  • http://randysroundtable.blogspot.com/ Randy G

    The markets have realized that great Speaker Of The House from California took a 1.62 billion dollar deficit and turned it into a 1.2 TRILLION dollar deficit and kept going did more damage than can be repaired in a lifetime.

    • Bingo

      So correct! This drop is predictable. I totally saw this coming–who with a brain didn’t. Too little too late on the deficit business. No budget for nearly two years. So much incompetence in the White House and congress over the last 2 and 1/2 years. Goodbye gains. Hello pain for retirees, etc. etc. etc.

  • http://randysroundtable.blogspot.com/ Randy G

    Five TRILLION dollars have been spent since Barry was sworn in. Hows that Keynesian hopey change stuff working? Its all on his watch. Epic failure, but peanut boy in Georgia is smiling.

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