A Badly Needed ‘Crash’
Lost in a truly egregious rout for US equities on Thursday was news that Steve Mnuchin and Nancy Pelosi have agreed to ensure a stopgap funding bill remains "clean" to avoid unnecessary complications which might "accidentally" dead end in a government shutdown.
If confirmed (and assuming any such agreement holds) that would presumably mean stimulus talks will remain separate from the wider government funding discussion. I won't delve too deeply into this other than to say that siloing the two n
Another really good post. You punch them out like I can’t believe.
We know an airpocket is coming up will be quick and furious. That’ll be the time to go in.
Bring it on.
Seldom have so few suffered so much to the pleasure of so many!
On the stimulus front, for Pelosi and Mnuchin to agree to a CR w/o stimulus suggests both see no stimulus as a not intolerable outcome. If stock weakness stimulates them back to the table, who will be more anxious to deal? I suspect the White House.
I suspect political calculations. Government shutdown can paint both parties unless one is clearly taking ownership. I suspect also that there is some deal working, not that this administration can be trusted to honor any agreement. I suspect if there is a deal it is with the Senate. However the Administration will be wanting to take credit for anything worked out in the Senate. It may be we need a market drop to teach them a lesson who is in charge.
When you talk about the suffering few remember that they probably view this as a buying opportunity.