So, instead of some massive rally, the markets still declined today.

originalpckelly

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Mon Aug-01-11 10:00 AM
Original message

So, instead of some massive rally, the markets still declined today.

Not by as much as had been happening, but still a decline.

This isn't just really related to the debt ceiling, a lot of it is to do with the economy. Reuters just had a story out a few days ago, which I posted, that said the Great Recession was actually even bigger than previously thought, and that this nation had so little growth, we almost had the start of a recession in the first quarter of this year.

Don't be surprised in a year or two when the economists analyze the situation to find that we actually have been in a recession for a few months now.

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drm604

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Mon Aug-01-11 10:03 AM
Response to Original message

1. It is related to the debt ceiling debate

in the sense that the spending needed to stimulate the economy won't occur and instead there will be cuts which will probably make things worse. I think it's entirely possible that the markets are reacting to that.

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daa

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Mon Aug-01-11 12:59 PM
Response to Reply #1

7. +1

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Romulox

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Mon Aug-01-11 01:04 PM
Response to Reply #1

12. Wall Street got TRILLIONS of taxpayer dollars in various programs, and it wasn't good enough

to spur historic highs.

There is no reason to believe that more tax cuts for the rich, for example, will stimulate the economy in any meaningful way. And such cuts are the only "stimulus" that this President and Congress are likely to agree upon in the near term. A broad-based stimulus aimed at working people coupled with a jobs program might be a different story. But these things are unthinkable under an Obama administration which is far more focused on multinational corporations than working families.

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snappyturtle

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Mon Aug-01-11 10:04 AM
Response to Original message

2. I heard on CNN the decline is due to the manufacturing report that

Edited on Mon Aug-01-11 10:07 AM by snappyturtle

says (I haven't seen it) manufacturing in the U.S. is almost at zero. Dah! How long have many been saying that we don't make anything here (U.S.) anymore? Wallstreet and Washington are out of the loop....again.

edit: Karmadillo OP: http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=439x1630694

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originalpckelly

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Mon Aug-01-11 10:06 AM
Response to Reply #2

4. Yep, there you go!

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indurancevile

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Mon Aug-01-11 01:02 PM
Response to Reply #2

9. it didn't say manufacturing was almost at zero. it said manufacturing GROWTH was flat.

Edited on Mon Aug-01-11 01:04 PM by indurancevile

which isn't surprising, considering the economy in general is flatline & UE is around 9%.

the us still makes plenty of things. it makes them with less people.

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misanthrope

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Mon Aug-01-11 01:02 PM
Response to Reply #2

10. Remember, globalization is your friend...

...and all those protestors in the 1990s were just miscreants like Clinton told us.

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Speck Tater

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Mon Aug-01-11 10:05 AM
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3. The country remains an economic basket case. Nothing done in D.C. changed that. nt

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watercolors

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Mon Aug-01-11 10:26 AM
Response to Original message

5. drop related to the GDP!

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MilesColtrane

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Mon Aug-01-11 10:29 AM
Response to Original message

6. The rating agencies wanted more debt reduction in the deal.

...on the order of $4 trillion.

They may still downgrade the country's AAA sovereign rating.

Also, the deal hasn't passed Congress yet, so I wouldn't expect any kind of rally.

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spanone

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Mon Aug-01-11 01:00 PM
Response to Original message

8. congress is too busy scoring points to worry about the economy

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nadinbrzezinski

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Mon Aug-01-11 01:03 PM
Response to Original message

11. Ane austerity will deepen it

I will not be too shocked if it puts us into a depression... and I mean by the technical terms of one.

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Amonester

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Mon Aug-01-11 01:09 PM
Response to Original message

13. The terraRists R about to win.

They bankrupted the USSR, remember?

Only republikkkans can accuse democrats to enable them. Never the other way around, even when it's true.

$weet...

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