El-Erian Says ‘Band-Aid’ Actions May ‘Further Undermine’ US Prestige. Goldman Sees Early September ‘Deadlines’
It's "not nothin'", so to speak, but it's not a long-term solution.
That was the consensus on Monday, as market participants, analysts, politicians, and economists digested Donald Trump's weekend executive orders aimed at papering over deep fissures inside the Beltway.
No one seems willing to accept the prospect that legislation isn't ultimately forthcoming, although there is considerable debate around what impact the president's decrees will have on the stalled negotiations.
Read more: Trump
You’re in the ER for a shotgun blast to your gut. House and senate debating whether to use a bandaid or stitches… President tosses super glue at you and tells you that should do it… meanwhile the fed is pumping blood into you and onto the floor as fast as they can. You are the economy and you really need a trauma surgeon immediately. Meanwhile wallstreet is putting bets on how low your blood pressure goes before you pass out.
That post is really good, cal0025.
Meadows did what Meadows does – blow up negotiations. The breakdown in talks provided Trump the backdrop to be the savior (aka – emperor). Now he can say that without him it wouldn’t have gotten done. Dems can sue, but he paints them as hurting workers. Political theater at its worst.
This was a perfectly executed lob-ball to Trump. The set-up started three months ago when Mitch literally laughed the $3T Congressional bill off the table completely. It then continued as phony “negotiations” that started with only one week left in the session and with the GOP not even able to agree among themselves. That was the set-up…there was NEVER going to be another relief bill. Having Trump come riding to the rescue was the plan from the start. Whether it would be possible or even legal was not the point, because it has nothing to do with fiscally supporting individuals and businesses, it is all political theater, AND THE DEMS WHERE PLAYED LIKE MUPPETS . If they had wanted to fund the economy, then they would have done what they did the first time; come to an agreement together. I am disappointed. Not only are the Dems not playing the same game, they are not even in the same stadium; the Dems are in Yankee stadium, while the GOP has Trump headlining on a stage on Broadway. Meanwhile…the poor get poorer. Of course, the market does even know there are poor people.
Well said.
A few days ago we were questioning what the Republicans’ motives were, as they fiddled and fumbled towards a non-deal. I made a post stating that the Republicans were doing what they always do, taking it to the brink, figuring that the Democrats would cave as they usually do and give in, so as to at least get some aid to prop up the economy (and actual people). But what happened was that the Democrats called the bluff of the Republicans this time. They didn’t fold. I don’t think this is over. Trump can try to take a victory lap, but it’s going to look like Bush landing on the aircraft carrier and declaring mission accomplished. Our car is overheating on the side of the road because we have a cracked radiator and we lost all of our coolant. The president and his buddies just pissed in the radiator and declared the car to be fixed. Not only is the problem not fixed, but the attempted temporary measure makes the problem worse, and will take more effort and time to unravel, if it can be unraveled. Remember the government shutdown? This is starting to look like a repeat of that, but it’s 85 days until election day this time.
And private equity is ready to pick up your house at the distress sale.
Agree with El-Erian’s take on the US further undermining itself.
We’re seven months into this. Figure it’s a 18-24 month window. Long way to go still.
Need to place your bets as the system (systems Worldwide ) are testing the ( other ) inhabitants of the Planet to see whether or not their tolerance for Oligarchy and Manufactured Chaos is within the the grasp of….. their ability to attain…. It is not a conspiracy just Man’s desire to test his Bounds … The MMT discussion and implementations are conspicuously a first REAL clue in this Drama…. It has all played out in times gone by with mixed results.!!!