After spending a day in the garden weeding and transplanting I arrive at my computer to see S&P futures up 20 points, 1.5% on news a compromise was reached. Quite frankly this is ludicrous given that anyone not brain dead knew a deal would be reached.
Let's pick up the action starting with U.S. Stock Futures Advance as Obama, Lawmakers Agree to Raise Debt Limit
U.S. stock futures rose, indicating the Standard & Poor’s 500 Index may rebound from its worst weekly loss in a year, as President Barack Obama announced an agreement to raise the federal debt limit and avoid a default.Let's stop right there and point out genuine BullSweet starting with a US dollar intraday chart.
Obama said in remarks at the White House that both parties in the U.S. House and Senate had reached an agreement to raise the nation’s borrowing limit and cut the federal deficit.
“A lot of people were short the dollar and U.S. equities into the weekend, betting that we wouldn’t have a deal,” Frederic Dickson, who helps oversee $28 billion as chief market strategist at D.A. Davidson & Co. in Lake Oswego, Oregon, said in a telephone interview. “Now investors will be reversing those positions as things are looking better than they did on Friday, even though there are still some hurdles to climb in the next 48 hours.”
The framework of the debt agreement would raise the $14.3 trillion debt ceiling through 2012, cut spending by about $1 trillion and call for enactment of a law shaving another $1.5 trillion from long-term debt by 2021 -- or institute punishing reductions across all government areas, including Medicare and defense programs, according to congressional officials.Pathetic Deal
Senate Majority Leader Harry Reid, a Democrat, endorsed the emerging accord among Republican leaders and the Obama administration even as negotiators were working out the final details. Senate Minority Leader Mitch McConnell told senators tonight that the U.S. will not default on its obligations.
Both S&P and Moody’s Investors Service are weighing a reduction of the U.S. credit rating. The impasse boosted to 50 percent the chance S&P will cut the grade from AAA within three months, the ratings company said last month.
5:24 pm: House Speaker John Boehner (R., Ohio) appears to be balking at the debt ceiling deal that Senate Democratic Majority Leader Harry Reid of Nevada has signed. Mr. Boehner is concerned about provisions in the deal that could lead to sharp cuts in military spending, say people familiar with the situation. House aides have warned that just because Mr. Reid has signed off on the deal doesn’t mean the deal is done.Ludicrous Deal Solves Nothing
See these top stories from Townhall Finance:
|Bill Tatro||Inside the Beltway: Where an Increase Becomes a Cut|
|John Ransom||Eat Those Peas Mr. President|
|Mark Baisley||How the Hobbits Take Washington|
|Mike Shedlock||This is a Downgrade Deal|
|Bob Beauprez||Eric Holder's Newest Witch Hunt|
|John Ransom||Email, Hate Mail and Comments from Readers|
In Other News: Bi-Partisan Agreement that Debbie Wasserman Schultz is a Horrible Person | Michael Schaus
In Other News: State Department Covers Up for Hillary – Asks IRS How to Destroy Hard-Drives | Michael Schaus