In spite of the new US debt deal, the Obama administration still has a way to go before the financial markets are convinced that a default of the largest economy in the world is to be avoided.
The markets opened sharply higher today as optimism that the debt ceiling and spending cuts bill would pass the House and Senate. However, almost right away politicians start to trash it. This lead the markets to think it may not pass. If it does not pass, the Dow will most likely see its biggest one day decline in years tomorrow.
The most likely outcome is, however, that it will pass, in which case the markets should bounce tomorrow.
On Monday, stocks like AAPL and CVX are higher while everything else is lower. In addition, inside this video there are levels given out on MMM and AKS:
And the US politicians are crawling down in their trenches, ready to start the battle of blame.
This video is an interesting illustration of the debate to come – CNN’s Don Lemon and congressman Ron Paul clashes over the debt deal:
Related by the EconoTwist’s:
- President Obama’s Message on the Debt Agreement
- Congressman Barney Frank: There Is A Chance The US Will Default
- Week Ahead: Debt, Debt and More Debt
- May Never See A Recovery
- USA Has Reached Its Debt Limit
- Is The Global Economy Really Shock-Proof?
You may also check out Monday’s Intraday Alert by Markit Financial Information – “Lacking Conviction”. (registration required).