How Republicans Crashed the Market

 Posted by at 2:29 am  Politics
Aug 092011
 

Wall Street had a terrible day.  Stocks were off over six percent, giving the S&P 500 the worst day since December 2008, and pushing the price of gold over $1,700 per ounce.  Republicans are blaming Obama, for the mess they caused.  Treasuries are not weak.  The market fled to them as a safe haven.  What crashed the market is that the S&P downgrade brought it to international notice that the Republican Party is tanking our economy for political gain.  Let’s go ever what happened and how in more detail.

9marketInvestors piled out of stocks and into a few "safe havens," such as gold and Treasury bonds. The appetite for Treasury bonds suggests that the Standard & Poor’s downgrade has not shaken investors’ faith in U.S. bonds.

Market experts said the Monday sell-off was sparked by the S&P announcement but was motivated more by growing concerns about the weakness of the global economy.

"It’s really all about economics," said Mike Norman, the chief financial strategist at John Thomas Financial.

The Dow ended the day down 634.76 points, or 5.5%, to 10,809.85. The broader Standard & Poor’s 500 index fell even more sharply, finishing the day down 79.83 points, or 6.6%, to 1,119.55…

Inserted from <LA Times>

The Banksters’ explanation is all wet.  The world economy is nothing new.  That has been factored into the market for weeks.  What is new is the stark realization that the Republican Party really would destroy the world economy, if they can profit politically.  Informed that they were at fault, Republicans actually cheered the news.

Rachel Maddow fills in the blanks and explains how Republicans caused the crash.

Visit msnbc.com for breaking news, world news, and news about the economy

The Republican response is to double down on their intransigence.

GOP-no2Will S&P’s controversial decision to downgrade the country’s bond rating — and its explicit citation of GOP intransigence on tax revenue — be enough to break the Republicans’ broad opposition to tax increases in future deficit reduction legislation?

Not if House Majority Leader Eric Cantor (R-VA) can help it.

In a Monday memo to the House GOP caucus, he candidly acknowledged that S&P faulted the party’s unyielding stance on tax revenues for the downgrade. But he encourages members not to erase this bright line… [emphasis added]

Inserted from <TPM>

Finally, as SoINeedAName reminded us in a comment yesterday, Standard & Poors made the reason crystal clear.

We have changed our assumption on this because the majority of Republicans in Congress continue to resist any measure that would raise revenues….

If you live in Wisconsin

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  23 Responses to “How Republicans Crashed the Market”

  1. William Cormier says:
    August 9, 2011 at 4:22 am

    I made this comment yesterday on a different forum:

    “As I’ve said before, the Tea Traitors are guilty of ECONOMIC TERRORISM – and to “cheer” that Standard & Poors downgraded the U.S. credit rating is probably one of the most anti-American, unpatriotic actions that I’ve ever heard of…

    Prosecute and imprison those that are purposely engaging in sedition and make it clear that terrorism, whether it be foreign or domestic, is still a crime in these United States. Democratic Congressmen these last few days have also accused these bastards of Economic Terrorism; if they believe that, why haven’t they taken action against those whom perpetrated this crisis?”

    It wasn’t Congress or even a Talking Head that first accused the Tea Party and the GOP of Economic Terrorism – it was us on the “left” through the various political forums that leveled that charge – and then Democrats in Congress and the media picked up on it and now it has become mainstream. That demonstrates to me that we can influence the body politic – which is quickly becoming a sign of the times and does offer us some encouragement. I believe that we should forcefully continue upon that path and as stock markets across the global community react and continue to lose ground, the outrage against those that are attempting to rule through blackmail and extortion will continue to grow.

    Was it “Democracy working” that resulted in the deeply flawed “deal” that Congress and the Obama Administration caved into – or was it an instance of giving into economic terrorism on what many of us believe was a manufactured crisis to give the Obama Administration the political cover to again allow the GOP to prevail on a compromise that wholly exempted the wealthy and corporations from shouldering any of the “shared (sic) sacrifice” that Obama is blathering about?”

    • Lisa G. says:
      August 9, 2011 at 12:30 pm

      I think the Repubs just fucked themselves – even the rich will be hurt by this -awww. They have no chance of being in charge of the economy from here on forward.

    • TomCat says:
      August 10, 2011 at 2:03 am

      Bill, you’re right. If you remember, the MSM ignored Bush’s flaccid response to Katrina until we shamed them into covering it. That coverage was the beginning of the end of the Bush regime.

  2. TWM says:
    August 9, 2011 at 5:05 am

    I have been saying for over a year when it hit 13000 again liquidate and put it in cash, you don’t make anything but pennies but you don’t lose anything either. This was another upward transfer of wealth from the stuck in the market Reagan forward privatized Social Security known as 401’s. Those are the people who lost wealth not them who engineered this; they had been slowly over the past four weeks getting out and into T bills or Gold.

    Now what would be funny in a sick way is if the treasury reduced the yield on T bills to 0 for them bought after last week. At least then the shift of wealth would be to the government and not them who manufactured this precipitous drop.

    Now bring on the deflation baby…let it come and then we bring China along for the ride where there middle class will crumble like ours has. Can anyone say Great Briton?

  3. One Fly says:
    August 9, 2011 at 5:49 am

    I have very little and it took a hit of almost 10%. 3500 smacks. These dirty bastards!

  4. Patty says:
    August 9, 2011 at 11:44 am

    How dare they call themselves patriots!

  5. Lisa G. says:
    August 9, 2011 at 12:35 pm

    I held everything short in all my investments – and did I every clean up – a full 30% on my investment account! Woo-hoo! 😆

  6. Kevin Schmidt says:
    August 9, 2011 at 1:06 pm

    You forgot to add DINO Obama and the DINOs in Congress to the list of people who crashed the market.

    Vote only for Progressives, because a vote for the lesser of two evils (DINO vs. Republican) is still a vote for a market crasher.

  7. SoINeedAName says:
    August 9, 2011 at 1:43 pm

    Rana Foroohar has a very informative article “Struck in the Middle” at Time magazine. In it she points out that rich just keep getting richer with the top 1% of the wealthy now controlling 20% of all our nation’s money – up from only 8% in the 70’s, while the Middle Class has not seen an increase in their net worth in four decades. And it’s this deathgrip squeeze of the Middle Class that has led to where we are:

    What’s interesting is that if we had done more to prevent inequality, we might not have ended up where we are. A recent report from the IMF looked at the causes of the two major U.S. economic crises over the past 100 years–the Great Depression of 1929 and the Great Recession of 2007. There are two remarkable similarities in the eras that preceded these crises: both saw a sharp increase in income inequality and household-debt-to-income ratios. In each case, as the poor and the middle classes were squeezed, they tried to cope by borrowing to maintain their standard of living. The rich, in turn, got richer by lending and looked for more places to invest, bidding up securities that eventually exploded in everyone’s face.

    In both eras, financial deregulation and loose monetary policy played roles in creating the bubble. But inequality itself–and the political pressure not to reverse it but to hide it–was a crucial factor in the meltdown. The shrinking middle isn’t a symptom of the downturn.

    NOTE: At this time, because it’s a current issue article, the Link requires a Time subscription – but in a week it should be accessible to all:
    http://www.time.com/time/magazine/article/0,9171,2086853,00.html

    And since it sounds like a number of folks moved to cash before the repubicans screwed the whole country, I just learned from CNN’s “Money” magazine how you can get 4.6% on an I Bond.
    If you buy an I bond before rates are adjusted again on Nov. 1, you’ll lock in a 4.6% rate for the next six months, but recognizing it’s a 5 year bond. But even if you withdraw it a year (the minimum time) and factor in the penalty for cashing in early, you’re still guaranteed to earn a minimum 2.3% if you pull your money out after the mandatory 12 months. And if the new rate in Nov. is higher than zero – you’ll earn more.
    I buy from Treasury Direct online, and it’s easy – you even get this kinda neat, secret, one-of-a-kind personal decoder cards for your account number. For more detailed info on the I Bond:
    http://money.cnn.com/2011/07/27/pf/savings_rates.moneymag/index.htm

  8. TWM says:
    August 9, 2011 at 5:41 pm

    MUST SEE TV

    • TomCat says:
      August 10, 2011 at 2:10 am

      Mark, he makes some valid points, but fails to explain that Obama’s final cave to just get past 2012 was not his plan, it was his last resort.

  9. TomCat says:
    August 10, 2011 at 2:12 am

    To the DINO commenting as “Robert” who referred to Obama as “Uncle Tom”. One thing I will not tolerate here is racist slurs. You are not welcome here.

  10. Paula Menyuk says:
    August 10, 2011 at 10:20 am

    All of this should lead to the ouster of those who caused it all in the next election if Americans use their heads.

  11. Zee Kallah says:
    August 10, 2011 at 11:07 pm

    blame does not solve

    • TomCat says:
      August 11, 2011 at 12:22 am

      Zee, while I appreciate your concern, recognizing the Republicans responsible and removing them from power is the only way to keep them from preventing all attempts to solve the problem, which they have successfully done so far.

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