Archive for September, 2013

Shut Happens

Courtesy of ZeroHedge. View original post here.

Submitted by Tyler Durden.

It's 12:01am, do you know where your government is?

  • *WHITE HOUSE BUDGET OFFICE DIRECTS AGENCIES TO BEGIN SHUTDOWN
  • *U.S. GOVERNMENT SHUTS DOWN FOR FIRST TIME IN 17 YEARS

S&P Futures are 1677, 10Y yield 2.65%, WTI $101.96, Gold $1329.00 – let's see where we open tomorrow…

 

Full Statement from The White House:

MEMORANDUM FOR THE HEADS OF EXECUTIVE DEPARTMENTS AND AGENCIES

FROM: Sylvia M. Burwell, Director

SUBJECT: Update on Status of Operations

This memorandum follows the September 17,2013, Memorandum M-13-22, and provides an update on the potential lapse of appropriations.

Appropriations provided under the Consolidated and Further Continuing Appropriations Act, 2013 (P.L. 113-6) expire at 11:59 pm tonight. Unfortunately, we do not have a clear indication that Congress will act in time for the President to sign a Continuing Resolution before the end of the day tomorrow, October 1, 2013.

Therefore, agencies should now execute plans for an orderly shutdown due to the absence of appropriations. We urge Congress to act quickly to pass a Continuing Resolution to provide a short-term bridge that ensures sufficient time to pass a budget for the remainder of the fiscal year, and to restore the operation of critical public services and programs that will be impacted by a lapse in appropriations.

Agencies should continue to closely monitor developments, and OMB will provide further guidance as appropriate. We greatly appreciate your cooperation and the work you and your agencies do on behalf of the American people.

Now it's getting serious…





Comment by jmm1951

View Single Comment

  1. jmm1951
    September 27th, 2011 at 5:27 pm
    Actually I think there are quite a few other European countries that don’t use the euro. Denmark for one. You have to ask, DID IT NOT OCCUR TO THE GOVERNMENTS OF ANY OF THE COUNTRIES THAT JOINED THE EURO THAT THEY WOULD LOSE CONTROL OF THEIR OWN ECONOMIES and the ability to adjust interest rates, etc.

    Good article anyway. He is right about the Democratic Party being so ineffective. If they want to challenge the Republican hegemony, then  why don’t they study the behavior of US voters, read the works of George Orwell and set up their own propaganda TV news station, feed the population with simple but memorable slogans, quote the Bible wherever possible, and generally play the game as it is played in US politics.







CHART OF THE DAY: A Government Shutdown Is No Reason To Be Selling Stocks

CHART OF THE DAY: A Government Shutdown Is No Reason To Be Selling Stocks

By ROB WILE at Business Insider

Stocks are tumbling today, and some pundits are blaming the impending U.S. government shutdown.

But this wouldn't be the first time the government shut down. In fact, the stock market actually rallied during past shutdowns.

Below is the chart for the S&P 500 showing what happened in the double-barreled shutdown that started November 14-17, 1995 and then resumed December 16,1995 -January 5, 1996.

"Counter-intuitively the S&P 500 rose during both shutdowns, up 1.83% and 0.06%, respectively," noted Oppenheimer's John Stoltzfus. "Curiously enough a difference of opinion on the first shutdown was tied to issues that included Medicare premiums. The second shutdown was linked to a seven-year budget plan proposed by the White House"

"Post the second shutdown the S&P 500 rallied some 10.52% from January 10th through February 12th 1996," he added.

No reason to panic.

stocks government shutdowns

Oppenheimer





With 20 Minutes To Shutdown – House Reconvenes – Live Feed

Courtesy of ZeroHedge. View original post here.

Submitted by Tyler Durden.

We presume it is to sing Auld Lang Syne but with 20 minutes left until the inevitable, it can really only be ensure they get the last soundbites in before the ball drops…

 





Comment by OptionSage

View Single Comment

  1. OptionSage
    December 31st, 2007 at 8:42 pm
    Thanks Troy! Happy New Year!







T-Minus 60 Minutes: Harry Reid Says Will Not Go To Conference – Live Feed From Senate

Courtesy of ZeroHedge. View original post here.

Submitted by Tyler Durden.

Much confusion with just one hour left as Eric Cantor seeks to request a conference with the Senate. This is taking place even as the White House budget office will instruct agencies on a shutdown in under 30 minutes. And moments ago, Harry Reid said from the Senate that he would “not go to conference” until he gets a clean CR. So unless the House Republicans fold completely, as Democrats hope they will, the shutdown is assured.





JPMORGAN’S TOM LEE: The Government Shutdown Is Not A Reason To Sell Your Stocks

JPMORGAN'S TOM LEE: The Government Shutdown Is Not A Reason To Sell Your Stocks

BMATTHEW BOESLER, of Business Insider

Tom Lee

Bloomberg TV

A government shutdown appears imminent, but it's no reason to sell stocks, says JPMorgan chief U.S. equity strategist Tom Lee in a note to clients titled "Not a thesis killer, and not a reason to sell."

"Overall, markets have been down 0.2% from the start of a shutdown until the end, with the longer the shutdown, generally the worse that markets perform," says Lee. "70% of the time (12 of 17 times), stocks gained from the start of the shutdown to 30 days later (up 0.6% on average) — most of the selling took place ahead of the shutdown."

Lee expands on his argument that the bulk of the government shutdown-related selling has already taken place:

Is this discounted? The 2.5% decline into the shutdown (since 9/18 highs) ranks this as the 3rd worst since ‘76. The bulk of declines seem to come prior to the shutdown itself with equities falling a median 0.4% in the 15 days going into the shutdown (see Figure 1). Since peaking at 1725 on 9/18, the S&P 500 is down 2.5%, ranking this as the 3rd worst decline into a government shutdown — the two others being 10/82 and 10/84 (1 day and 3 days, respectively) with 3% declines each. In 1982 (per media sources), it looks like Congress simply missed a deadline to vote on a new spending bill and in 1984, a new spending bill was held up due to various packages being attached to the bill. The average performance of equities into a shutdown, since '76, is a gain of 0.4% (15 days prior to the shutdown date).

Notably, during the two years where stocks fell sharply into the shutdown (‘82 and ‘84), equities gained 11% and 3%, respectively (start of shutdown to 30 days later). Does this suggest that we have seen the worst of the selling? It is not clear, since this shutdown is only the first showdown with the debt ceiling still an open issue. In other words, investors are likely to sit on the sidelines longer.

"We would be buyers of major weakness, even acknowledging investors need…
continue reading





Futures Ramp On Speculation House Republicans May Fold; Fall On Report No More Votes Tonight

Courtesy of ZeroHedge. View original post here.

Submitted by Tyler Durden.

Update: Well, kiss that idea goodbye: GOVERNMENT WILL SHUT DOWN TONIGHT; HOUSE WILL NOT ATTEMPT MORE VOTES TONIGHT, WAPO REPORTS (link)


While it will be supremely ironic if stocks were to soar on the day the US government shuts down (it would be curious to see how Congress would spin that particular “market” reaction to a world without a US government), a ramp in the futures is precisely what is going on.

And while there is no definite reason for this market reaction, it is being attributed to two things: first, the House Rules panel announced moments ago it would meet at 10:30 pm on a new spending Bill and are that Republicans are said to seek talks with the Senate on spending. Of course, if the GOP folds in the last moment, it would be Boehner’s most epic collapse to date (in a long and illustrious series of humiliations). Which brings us to reason number two: also moments ago, John McCain pretty much threw his colleagues under the bus, saying House Republicans will not “succeed in the end” and that the House will end up sending a clean CR, just as Obama has demanded all along, which in turn has emboldened traders to assume that there is a better than negligible chance the GOP will once again bend over.

From NRO:

Senator John McCain had tough words for House Republicans tonight after the Senate rejected their latest amendments to the continuing resolution.

 

“They will not succeed in the end,” McCain told reporters of the House Republicans trying to tie anti-Obamacare measures to the CR.

 

“We can’t win,” the Arizona senator added. Talking about the House sending a clean CR, McCain remarked, “That’s going to happen sooner or later.”

 

Asked if there would be another vote, McCain said,”No, no, no we’re not doing [that].” Senate majority leader Harry Reid, he added, “thinks that they [the House] are not going to act tonight.”

Either way: 90 minutes now and counting.





NYPD Searching For Parachutists Who Landed Near Goldman’s New York Headquarters

Courtesy of ZeroHedge. View original post here.

Submitted by Tyler Durden.

Just in case you thought the surreality of the US political debacle we are witnessing was too much, the NYPD releases a statement that stokes the fire of confusion. The New York Police Department is looking for two unidentified people who may (or may not) have parachuted on to a lower Manhattan Street. Private security guards reported seeing the skydivers land in front of the Goldman Sachs HQ at around 3am (which we could not help but note was the highs of the European session for Gold). The police noted it was unclear if they jumped from a plane or from a high-rise building (or from Bernanke’s helicopter).

 

Via AP,

New York City police are looking for two unidentified people who may have parachuted onto a lower Manhattan street.

 

NYPD Commissioner Raymond Kelly said private security guards reported seeing parachutists land in front of the Goldman Sachs headquarters at about 3 a.m. Monday. The building is near the World Trade Center site.

 

Investigators are studying security videotape from the area. Kelly says footage shows two people with parachutes walking away from the spot.

 

Kelly says it’s unclear whether the pair possibly jumped from an aircraft or from a high-rise building.

 

In June, police in Chicago said three men climbed to the top of the Trump International Hotel & Tower, North America’s second-tallest building, and parachuted to the ground. They got away.





Comment by amatta

View Single Comment

  1. amatta
    July 23rd, 2010 at 10:07 am
     Damn what happened with JCI…!! Should have sold some calls as I thought yesterday! 







 
 
 

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