Originally Posted By: Matter-eater Man
 Originally Posted By: PJP
whomod I agree with a lot of what you are saying I just don't agree with how we got here. I want them to pass a bill but I want them to take their time and make sure everyone is comfortable with it. Another few days won't kill anyone.


Looking at what the stock market did today it looks like your right PJP. Yesterday I think alot of worst case scenarious were being envisioned but it didn't happen today.


Like I said, the dow isn't telling you shit. It's just an indicator of whether they're more pessimistic today of a deal being finalized or optimistic. Look at the credit situation:

The washington post:

 Quote:
Yesterday, the annualized rate for those overnight loans spiked by more than four percentage points, to 6.9 percent, its highest level ever. Normally, Libor on dollar loans is not much higher than what it costs the U.S. government to borrow short-term money, which yesterday was nearly zero.

That tells experts that banks around the world are basically unwilling to lend to each other at any price. It means that cash is not flowing to places that need it. And, if sustained, would ultimately lead to higher borrowing costs for ordinary U.S. households and businesses.

"The interbank markets are a fundamental part of the plumbing of the financial world," Dennis Lockhart, president of the Federal Reserve Bank of Atlanta, said in a speech yesterday. Many variable-rate mortgages, corporate loans, and other forms of debt adjust relative to Libor.

"This contraction in availability and rise of the cost of credit have worsened . . . for corporate and business borrowers," Lockhart said. "We've heard anecdotes confirming this from contacts throughout the Southeast. In short, Main Street is being affected."


I don't think the day to day of the Dow is what anyone but the most uninformed Congressman is looking at. Basically as I said, it's just a gauge of the day to day mood of whatever enticement or discouragement is immediately in front of these people. It's not telling you anything long term. The credit situation and the banks failing is the real gauge. And this liquidity situation is what everyone says has them scared shitless. The Dow will go down and stay there AFTER the worst case scenario comes to pass, not before. From here to if we get there, it'll just rise and fall wildly reflecting the uncertainty.