Markets rallied slightly today with news of a proposed Greece 2.0 bailout package and a possible debt ceiling deal emerging in Washington.
European leaders led by President Nicolas Sarkozy of France and Chancellor Angela Merkel of Germany hammered out a 109 billion Euro dollar bailout deal in order to prevent a financial crisis breaking out on the European Continent.
On the home front, a deficit deal is apparently emerging between President Obama and the GOP; details include $3 trillion in tax cuts alongside a debt ceiling increase. However, President Obama and the GOP still seem to be fighting over the “raising revenue” issue, and it looks like a “revamp of the tax code” will be set for later. To make matters worse, it looks like the US Federal Government has 1 day left to make debt extension deal that can be written and passed in time for August 2nd.
On a side note, the Space Shuttle Atlantis made its final landing this morning, signaling the end of America’s ability to send astronauts in space, all the while echoing the apparent notion that the US is simply out of time and money.
All I can say is that despite all the “deals” being made, Europe will still likely have to “deal” with a sick Italy and Spain, and the US will still likely have to “deal” with the debt problem and two different ideologies on how to fix it. I wonder how long the “deficit can” can continue to take such a heavy beating and if indeed the Greek pit does have a bottom. Is there any sign of light or life?
I would not hold my breath.
T Minus 1 and Counting to Financial Armageddon: There is possibly one day left to strike a deficit ceiling deal so that it can be written and passed by August 2nd.
Dow Jones Industrials (DIA): +0.32; +1.57%
S&P 500 (SPY): +1.84; +1.39%
NASDAQ 100 (QQQ) +0.39; +0.67%
Russell 2000 (IWM): +0.76; +0.91%
Continuing Claims on Unemployment
More June Leading Indicators
Deficit ceiling final outcome…?
Have a great evening,
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