Before the Open (Aug 1)

Good morning. Happy Monday.
The Asian/Pacific markets closed up across the board. Australia, Hong Kong, Indonesia, Japan and South Korea rallied more than 1%. Europe is currently up across the board. Austria, Amsterdam and London are up more than 1%. Futures here in the States are up big.
The dollar is down a small amount. Gold and silver are down. Crude oil is up a buck.
So Congress has finally reached an agreement regarding raising the debt ceiling and cutting spending. I was kind of hoping they wouldn’t. I was hoping we’d default on our debt and the sh#t would hit the fan. Why? Because Congress never does anything until something very bad happens. They don’t enact laws protecting miners until after there’s a mine explosion and many people die. Congress is always reactionary. They don’t do jack until they have to, and even though we have massive amounts of debt, we’ve never defaulted and we’ve always maintained our AAA rating. Kicking the can down the road is an appropriate analogy. Leave it to the next person who wins a seat. Leave it to the next generation. They’re always spending money like crazy now and leaving a mess to the next guy. I figured if the sh#t hit the fan, they’d have no choice but to act now rather than continue the downward spiral. Oh well. I just hope the agreement at least sets us on the right course, and I don’t think these comments are overly political. It doesn’t matter what party you affiliate with, you can’t deny the financial path we are on is unsustainable and will eventually lead to total destruction.
Besides this I don’t have anything to add to my weekend report. Today and tomorrow will be big. The market has been weak for one reason and one reason only…the lack of an agreement in Congress. If the market can’t right itself now, it’s in trouble. More after the open.
headlines at Yahoo Finance
today’s upgrades/downgrades
yesterday’s sector performance
this week’s Earnings
this week’s Economic Numbers

0 thoughts on “Before the Open (Aug 1)

  1. Jason, I love your money posts on the market. I do disagree with you on one thing…the markets are down on the charade in Washington but also on the slowing economy world wide. Thanks, Mike.

    1. Michael, what do YOU think about the fact that the markets are down?
      You criticize Jason for being off the beam, but yet you do not state
      your position regarding this matter. HW

  2. Congress hasn’t really done anything except spent more money. They just kicked the can down the road. Eventually we will pay for their action through more than likely a massive inflation and a much lower standard of living.

  3. Hard to accept that the shenanigans the hooligans in congress (and white house) are pulling will have an effect (yes, “effect”) on the markets. They do. Because as you say, this course we’re on will lead to total destruction. I doubt that any substantial cutting will take place and all they’ve agreed to is a smoke and mirrors charade to keep us from going over the cliff today. But looking behind the BS you see that it’s just a band aid on a wound requiring a tourniquet. I hope I’m wrong, but I doubt it.

  4. what time period ,Neal
    i dont short bears –i short bulls
    intraday we are currently in a sideways time phase
    form reading is used and brake of suport or s2 would be needed
    unless u want to buy a bear

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