Winner 2013 Webby Awards for Best Political Website
June 19, 2013

 Choose a size
Text Size

Trending:     chris hedges     economy     nsa     politics     robert scheer
Most Read

Reporter Who Brought Down the 'Runaway General' Dead at 33

The Terror Con

Nate Silver vs. Politico: It's on Again

The Making of a Global Security State

IRS Conspiracy Theory Debunked, Rand Paul Answers Cheney Criticism, and More

Most Comments
Most Emailed

 * NEW! * Greenland’s Great Melt Is Pinned On Climate Change
 * NEW! * The Making of a Global Security State



The Unwinding


Truthdig Bazaar
Storm from the East

Storm from the East

Milton Viorst
$ 11.16

more items

 
Ear to the Ground

Even Wall Street Hates the Debt Deal

Email this item Email    Print this item Print    Share this item... Share

Posted on Aug 4, 2011
White House / Pete Souza (with a notable modification)

President Obama signs the debt compromise, agreeing to trillions of dollars in cuts at a time when economic indicators are already moving in the wrong direction.

The Dow Jones Industrial Average has plummeted by 760 points since the terms of the debt ceiling deal were announced Monday. If austerity was supposed to encourage economic growth, someone forgot to tell Wall Street.

On Thursday alone, the index dropped more than 500 points, the worst one-day drop since the lowest lows of the meltdown.

Some budget-cutting enthusiasts promoted the “important economic advantages of linking the debt limit to spending reductions,” and we’re seeing the immediate aftermath.

Before the deal was voted on, Paul Krugman warned, “The worst thing you can do in these circumstances is slash government spending since that will depress the economy even further.”

Investors seem to agree and, for the moment anyway, have decided to get out of Dodge.  —PZS

A few choice quotes from The Wall Street Journal:

Stocks plunged, driving the Dow Jones Industrial Average to close down more than 500 points, as investors appeared to lose faith in the ability of the world’s policy makers to revive the global economy and stave off a rolling debt crisis in Europe.

[...] Investors across the globe have been buffeted by economic and political turmoil in recent days. In the U.S., fears have turned from worries about a possible default by the U.S. government to a weakening economic outlook. A string of data have pointed to a slowing of the recovery, and investors are now bracing for the closely watched non-farm payroll report on Friday.

[...] On the floor of the New York Stock Exchange, the mood was somber and tense. “There is no reason to buy U.S. cash equities,” said Doreen Mogavero, president of Mogavero Lee & Co. “[Investors have] come to the point where we find out we could be looking at ten more years of austerity.”

Read more

More Below the Ad

Advertisement


New and Improved Comments

If you have trouble leaving a comment, review this help page. Still having problems? Let us know. If you find yourself moderated, take a moment to review our comment policy.

John R.'s avatar

By John R., August 5, 2011 at 2:08 pm Link to this comment

The only way to counter these corporate ideologues is to renounce
consumerism.

We, our children, friends, and most of the world are bombarded daily with the
commercials. You know the ads - buy this buy that.

To change yourself and become self reliant (off the grid) is certainly a step
backwards.

But since that top percentage cares nothing about you as an individual, then
they may as well not exist.

There is an empathy gene missing in that top percentage.

The one that defines us as humans.

Making this self reliant move will of course isolate you from the masses.

To get there (a self made roof over your head, a source of water, growing your
own organic food, reading of ways to stay healthy without any prescriptions).

Truth of nature will not elude you in your self reliant world.

Find ways to slowly disconnect from this system. This system is broken.

Do not let the T.V. instill fear in you.

Long live the truth.

Report this

By ocjim, August 5, 2011 at 11:42 am Link to this comment

It’s only the realization that a few hundred dogmatic ideologues control the future of this country and of the world. Our country is in a sorry state when such miscreants make or don’t make the right decisions for the rest of us. Aren’t you a depressed investor when you think about it. No stimulus will be possible for at least a year and a half, and that’s only if voters gets some smarts. Republicans are leading us into more recession to defeat Obama in 2012. As bad as Obama has been, it would be cataclysmic to have any Republican in the White House.

Report this
Hulk2008's avatar

By Hulk2008, August 5, 2011 at 10:17 am Link to this comment

Conservatives by nature only look backward, wistfully hoping for the 18th century, ignoring modern economics, science, and “all them new-fangled doo-dads”.  They had NO idea that their bogus tight-sphinctered approach to the world would cause anything but a few ripples in the family cistern. 
Their foresight is closer to their noses than Ben Franklin’s square-rimmed glasses.

Goldman Sachs studied the corporate world as far back as the 80’s and accurately predicted the future as a series of failed leveraged buy-outs and me-too fads of bottom-line feeding in lieu of real investment, led by bean counter MBAs whose only goal was a temporary boost in short term profits.  In those terms, the ultra-wealthy who followed that lead have done remarkably well:  The nation and its people be damned. 
    The multinationals could care less about any specific country.  They float from place to place, mansion to yacht, private jet to stretch limo, with allegiance to nothing but profit.

The class warfare ended long ago:  the wealthy won. 

As for me, I converted my IRA into commodity speculation:  wax lips futures.

Report this
kerryrose's avatar

By kerryrose, August 5, 2011 at 9:37 am Link to this comment

Conservatives and conservative media have taken the stand that the stock market fell because NOT ENOUGH money was cut from the budget.  Wall Street wanted 4 trillion cut.

Report this

By TDoff, August 5, 2011 at 8:12 am Link to this comment

Maybe the President really is brilliant, as well as devious, and he foresaw the stock market would plunge if he signed the debt ceiling bill, thus getting his revenge on Wall Street and his rulers.

Though I’m sure Goldman et.al. will make money no matter what the market does, it’s difficult to imagine an arrogant blowhard like Blankfein selling himself short.

Report this

By Inherit The Wind, August 5, 2011 at 7:49 am Link to this comment

SteveL, August 4 at 8:59 pm Link to this comment

Who’s bright idea was it to hold the economy hostage?
***********

Most likely the Koch Brothers, through the shills they funded, the Tea Party.

Report this

By susyc, August 5, 2011 at 4:46 am Link to this comment
(Unregistered commenter)

But, but austerity is good!  Besides Americans aren’t worth the investment…what do we have to offer?  Nada, zip, zilch.  Welcome to Hooverville.

Report this

By SteveL, August 4, 2011 at 8:59 pm Link to this comment

Who’s bright idea was it to hold the economy hostage?

Report this
prisnersdilema's avatar

By prisnersdilema, August 4, 2011 at 8:55 pm Link to this comment

Remember those green shoots…way back when…bullshit will only take you so far…

There has never been any recovery, no improvement in the economy..

The corporations keep sending jobs overseas at a record pace, G.E., then Ford…those
that run the corporations keep on doing what got us here, Americans will never, never,
begin consuming again under this business climate, things will only continue to get
worse…

Until Wall Street is prosecuted for financial crimes, along with the mortgage industry and
the banks, Glass Stegal restored, government regulatory agencies like FDA, USDA
restored to independence from plutocratic control, derivatives outlawed completely, and
corporations fined for sending jobs overseas, there will never be any recovery.

And it will never happen because the plutocracy will fight it tooth and nail, even if it
destroys this country…...So that’s what will happen, This country will soon be destroyed
financially, there will be no return.

Report this

By Inherit The Wind, August 4, 2011 at 8:33 pm Link to this comment

It only took two days for the 40 year argument of the Supply Siders to be crushed by Keynesian facts.  Here’s another one: Supply means NOTHING without demand.  Who cares if you have a corner on the market for chariot hubs, when nobody drives chariots?

Demand drives everything. EVERYONE needs food, clothing, shelter, transportation, communication, health care and education.

As dumb-ass stupid as the Stock Market is, compared to Congress (and especially the TeaParty) they are all fuckin’ Einsteins!  Sure, they don’t want their taxes and their corporate shells taxed.  But they know that if the BIGGEST actor in the economy cuts its spending by trillions, hundreds of thousands of businesses will fail, throwing millions more out of work, defaulting on debts that will cause hundreds of thousands more businesses to fail.  And who will be there, bottom-feeding? The “Mr. Potter"s of the world.
“Only you and I kept our heads, George. You saved the Building & Loan and I saved the rest!”
“Some say stole it!”
“The suckers, George!”

That’s the paradigm of today’s politics and today’s ethics by the same people who shout about family values…while they cheat on their wives and cheat on paying child support, for their own children.

Report this

By Steve E, August 4, 2011 at 6:56 pm Link to this comment

The crap is hitting the fan sooner rather than later. Time for all the gutless and
stupid to face reality. The wars and the killing were accepted, the criminal banking
behavior was accepted, Obama’s lies were believed. Time to pay the piper
suckers. Watch as the well heeled fly away to more friendly and secure climes to
leave the rest holding the bag. Thank God for offshore accounts and private
security. Get ready for a cold hungry winter folks.

Report this

By Traditional American Democrat, August 4, 2011 at 6:36 pm Link to this comment
(Unregistered commenter)

Why have Obama’s favorable ratings gone down?

The favorite response for DC talking things is to say, ‘It’s the economy’, to which
they can now add ‘the markets’.

But, here’re the things most real people say:

a. Obama did not support us on debt and fair taxes: Washington Post-ABC poll
Washington Post-ABC poll, Spring 2011: 72 percent supported raising taxes on
the rich including 68 percent of Independen­ts and 54 percent of Republicans.
Obama twice ‘bargained­’ to extend the Bush tax cuts for the wealthy and will soon
extend the Bush-era tax cuts for the wealthy a third time.

b. Obama did not support us on TARP & Financial Bailout: Over 70% of us opposed
the bailout. Obama accelerate­d it with Geithner and Bernanke - both Bush
carryovers embraced by Obama. Geithner is soon to receive his ‘bailout’ from the
financial sector (as he soon ‘retires’ from the Obama administra­tion).

c. Obama did not support us on Health Care: 72% of us supported “a government­­
administe­red insurance plan - something like Medicare for those under 65—that
would compete for customers with private insurers.” Supporting Max Baucus,
Obama blocked hearings on single payer and chocked off true health care reform.
Instead he supported a private-sector, for-profit health insurance ‘reform’ that
provided insurance companies fabulous guaranteed profits.

d. Obama did not support us on Afghanistan: 64% of us opposed expanding the
war in Afghanistan and wanted to disentangle from Bush-era ‘War on Terror’ and
‘preventive war’ policies. Today, still over 60% of Americans oppose the war.
Obama continues it.

e. Obama did not support us in a ‘balanced approach’, but capitulated in a ‘debt
reduction package’ that no sane Democrat would have supported. No, he didn’t
just ‘support it’, he signed it. His mark is on it for posterity, for history - it’s part
of his ‘legacy’. 

Obama’s former supporters (among whom I number myself) have to find a
Presidential candidate who they can support in 2012. We have seen enough. There
is no use any longer in ‘yes, butting’, and ‘what would you have done’, and ‘you
people just don’t understand the pressures he’s under’ and blah blah blah.

Eventually, we’re judged by what we do.

What Obama has done is unacceptable to the middle class - over and over and
over again. We cannot waste our votes on Obama.

Report this

By Chris Herz, August 4, 2011 at 5:05 pm Link to this comment
(Unregistered commenter)

This is precisely why I believe progressives should stand aside from election 2012 and allow Bachmann or whatever Tea Partier to be elected.  Let us play chicken with Wall Street; two can play at that game.
Let us see how they like these fools telling THEM what to do.

Report this

By Dr Bones, August 4, 2011 at 4:37 pm Link to this comment
(Unregistered commenter)

Patience my pretties, Mr. O is following Reagan’s trickle down, union busting, austerity for the peasants.

The old pull yourself up by your bootstraps while corporations pay little to no taxes and get subsidized (are on welfare).

Report this

By doublestandards/glasshouses, August 4, 2011 at 4:23 pm Link to this comment
(Unregistered commenter)

Barack W Obama strikes again.

Report this
Newsletter

sign up to get updates


 
 
 
 
Join the Liberal Blog Advertising Network
 
 
 
 
 
 
 

A Progressive Journal of News and Opinion. Editor, Robert Scheer. Publisher, Zuade Kaufman.
© 2013 Truthdig, LLC. All rights reserved.