When the global community gets a good look at the worst the USA has to offer in leadership as was witnessed with the House of Representatives and their complete and unquestionable willingness to default the USA obligations, things change.
Besides the other topics of conversation today around Wall Street, the first inkling of a downward trend, everyone will head for the hills.
NEW YORK
The stock market is finishing its worst day since the financial crisis.(click title to entry - thank you)
The Dow Jones industrial average plunged more than 500 points Thursday. Investors are concerned that the U.S. economy will enter another recession and that Europe's debt problems are not closed to being solved. Major stock indexes fell more than 4 percent.
The Dow is closing with a loss of 513 points, or 4.3 percent, to 11,384. It was the worst day for the Dow since October 22, 2008.
The S&P 500 is down 60, or 4.8 percent, to 1,200. The Nasdaq is down 137, or 5.1 percent, to 2,556.
Twenty stocks fell for every one that rose on the New York Stock Exchange. Volume was very heavy at 7.5 billion shares. I don't blame them. But, they are also self defeating. There isn't much to say. The USA House of Representatives are proving everyday how unable they are to govern. They reworded the language in the FAA authorization and caused an implosion of the entire industry resulting in furloughs and layoffs.
A government the size of the USA, we are not Greece by a long shot, or anyone else for that matter, cannot simply change a few words here and a few words there and yank monies out from under the industry, small airports or not without catastrophe striking. It doesn't work that way.
There needed to be a short term reauthorization of the FAA until all the details could be worked out in the new patchwork quilt presented to the Senate from the House. Basically, the House does not accept leadership from anyone, including their own Speaker.
by EYDER PERALTA
"Senate Majority Leader Harry Reid says there is bipartisan compromise to end the partial shutdown of the Federal Aviation Administration that has left 74,000 transportation and construction workers idled," writes the AP.
The AP adds that Reid did not specify details in his statement, but other officials say the Senate could approve a House bill as soon as Friday.
This story is still developing. We'll update as we hear more.
The minority party in the House, namely the Tea Party, is working at the federal level where change occurs slowly. The small airports that exist for the successful travel of many Americans can't be abandoned without NOTICE.
Understand notice? If the USA government is going to stop subsidies it rewrites the law so that a given time in the future the subsidies will be stopped. It gives the enterprises enough time to reorganize or merg or accommodates their customers and employees in a different way.
It is no different with the DOW. The 'instability' the USA federal government is exhibiting is more than a worry; it is a huge amount of trouble for investors. There is nothing worst for global markets than instability and the federal government in the USA is the last place where this should be occurring when it has been the USA that was leading the recovery.
Now, the idea that companies within the USA were starting to be more optimistic about adding jobs and expanding their profits will stop. Rather than expanding the economy and the tax base to improve market activity, now there is a fair to good chance there will be more contraction because of ever increasing uncertainty coming from the one place where it should never exist and that is the USA Federal government. So, while Mitch McConnell believes he is being a wise man to make “Obama a one term president” he is actually causing more problems than he will ever solve.
Even companies near and dear to the American people of which we helped recover, namely auto manufacturers, will give the 'market place' a second and third look before expanding their operations. THAT is a tragedy, not just a set back. Why? Because some of the most cutting edge technology within the automotive industry is right here in the USA. That means it would lead to greater exports and a better trade balance.
The current House leadership is not sufficient to rein in their most extremist elements and that is going to cause problems over and over. The second option in leadership will only make it worse. It is for that reason alone there cannot be repeated debates about the deficit, the debt, the budget, the tax structure. Every time the opportunity arises the Tea Baggers reek holy hell with everything and they don't care if the ship sinks. They just don't.
What the Tea Baggers CAN'T get their minds around is that markets like the DOW aren't $12,000 and falling. It is about millions and billions and falling. That dynamic seems to escape them and they certainly are NOT preoccupied with REASSURING anyone, especially the people dependent on small airports among other things.
What are ya gonna do?
Maybe Secretary Geithner needs to run a few seminars for the Republicans in the House. I am serious. These House members are a disaster. And make it mandatory. Don't shoot yourselves in the foot folks. You either McConnell. You aren't immune either!
