Morning Market Roundup: Failure DC
- Posted on November 22, 2011 at 9:30am by
Becket Adams
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Here’s what’s important in the financial world this morning:
Europe: Yields on what Spain had to pay for $4 billion in debt reached record levels. That is similar to what happened to paper issued recently by France and Italy. Rising yields are a sign that capital investors do not believe the European Central Bank (ECB) will rescue debt-ridden nations in the region. The debate continues about whether the bank will aggressively buy sovereign debt from the eurozone’s financially weakest nations. ECB management has been against the idea, as has the most powerful nation in the region — Germany.
Tech.: PC industry sales results showed once again that traditional laptops and desktops have been bulldozed by tablet PC and smartphone sales. Hewlett-Packard (NYSE: HPQ) announced earnings from its most recent quarter. Its PC numbers were dismal. The company’s former CEO had planned to sell or spin off the computer unit. The board of directors may now wish he had. The HP earnings confirm the reasons for sales trouble at Dell. By contrast, Apple iPad and iPhone sales have been strong. So have sales of Google Android-powered devices. Growth prospects for the PC industry are gone.
Politics: The lack of any budget reduction plan by the “supercommittee” may cause more good than harm. Automatic cuts are now supposed to begin. This will mean large reductions in expenditures by the Defense Department and sharp cuts to social programs. The Bush tax cuts could disappear, as could long-term unemployment benefits. Taken as a whole, these cuts will further weaken the economy, many experts believe. In place of the cuts, Congress may elect to reduce the deficit, but with more balanced reductions, which finally could include Medicare.
Increasing numbers of retail experts predict that major store chains and e-commerce firms will cut the cost of their inventories to gain revenue as consumer optimism falters. The lack of a deal in Washington to set budget cuts could add to consumer malaise. The possibility that unemployment benefits and tax cuts could be negatively effected will cause further concern. Stores may hold their own in sales in November and December. Profits are another matter.
(Douglas A. McIntyre—24/7 Wall St./The Blaze)
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Fiscallytead
Posted on November 22, 2011 at 3:12pmDid anyone really think that the supercommittee would come up with a budget….when do we start talking teason?
Report Post »packsack54
Posted on November 22, 2011 at 2:35pmNothing was solved by that committee. It was doomed before it got started. The dollar is higher today due to the euro being just another fake currency. People around the world still put faith in the USA. But they have not seen what going on in Washington DC. We can not keep our promises to other countries and our own promise to the citizens. There friends and themselves have put this country into bankruptcy. The government does not want to admitt that we are BROKE.
Report Post »packsack54
Posted on November 22, 2011 at 2:20pmCongress and Senate is a F- rating on job preformence.
Report Post »packsack54
Posted on November 22, 2011 at 2:16pmThere you have it folks? Congress job preformence is a F- in my book. You could find better people on the street that would do a better job than what is in Washington DC. When is the Americian citizen going to protest? The game is rigged on your choices for congress and senate and president. They are nothing but the pawns in the chess game. You must find the other pieces and destroy them if you want you country back?
Report Post »Heil88
Posted on November 22, 2011 at 1:20pmImpeach and fire all those RAT Bast**** and help educated your family and friends so they vote wisely in the future. We are to blame!
Report Post »mildot rider
Posted on November 22, 2011 at 11:17am2012.
Report Post »Massive Global Economic Collapse.
Massive Global Protests.
Eventual Martial Law in the U.S. (before elections)
Elections Postponed
Civil War..States suceed.
SHTF
lukerw
Posted on November 22, 2011 at 11:34amfubar!
Report Post »packsack54
Posted on November 22, 2011 at 2:26pmYes the South will rise again.
Report Post »Gonzo
Posted on November 22, 2011 at 11:13amFailure Obama not failure D.C.
Report Post »lukerw
Posted on November 22, 2011 at 11:34amAn Obama success… is… a DC failure!
Report Post »geo01
Posted on November 22, 2011 at 10:54am.
Report Post »With respect to the ‘“SUPER COMMITTEE”
.
DID ANYONE REALLY EXPECT A DIFFERENT OUTCOME?
.
Washington is broken. WASHINGTON CANNOT FIX WASHINGTON. They have to much at stake to change the way they do things.
.
It would be nice to have ballot initiatives like at the State level.
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THE PEOPLE’S INPUT IS CRUCIAL AT THIS TIME . . . A time that to me that WE DO NOT TRULY HAVE A REPRESENTATIVE GOVERNMENT. That has gone away with the power of the special interest and Lobbyist in Washington D.C.
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Time for a change . . . no current political insider will ever offer this change.
.
cemerius
Posted on November 22, 2011 at 11:12amYour right a National ballot for a US Constitutional amendment on Term Limits for Congress and Balanced budget need to happen yesterday!!
Report Post »packsack54
Posted on November 22, 2011 at 2:28pmWhat do you expect from a bunch of Pawns.
Report Post »1unwashed
Posted on November 22, 2011 at 10:51amI guess the establishment will pick our nominee if people don’t wake up.
Report Post »Eliasim
Posted on November 22, 2011 at 10:45amMichelle Bachmann would be a good choice, but the establishment doesn’t want her.
Report Post »DrFrost
Posted on November 22, 2011 at 10:50amI think Bachman could do a great job. As you say, though, she would have a hard path to the presidency for various reasons. I believe, however, that Gary Johnson would do a better job.
Report Post »Eliasim
Posted on November 22, 2011 at 10:51amAnd truth be told in my opinion that they will deny until they are blue in the face is that the Republican establishment machine in it’s entirety, doesn’t want a female or a African American President.
Report Post »Eliasim
Posted on November 22, 2011 at 10:55amAnd because the Republican Establishment doesn’t want Herman Cain or Michelle Bachmann as a primary candidate, it will seal in another election for Barack Obama, or Maybe Hillary Clinton.
Report Post »Eliasim
Posted on November 22, 2011 at 10:56amTheir own arrogant dislikes are going to destroy them, and America.
Report Post »Occupy Blaze Street
Posted on November 22, 2011 at 10:42amThank You Congress for adding to the difficulty of living our precious American Dream here in our local communities.
Report Post »Gonzo
Posted on November 22, 2011 at 11:16amCongress? Who do you think was behind the scenes telling the Dems not to deal? They don’t jump until Obama says jump. Blaming Congress is a smoke screen. Obama set it up this way so people would have that exact reaction.
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