Okay, I feel like I want to give up. The weight of the news is almost too much. This, coupled with a lack of sleep (had dinner guests and we stayed up late), makes me want to say to the market, “Fine. Be that way. Nobody cares if you go up or down anyway.” I know, I know, be careful of what you say, as once you say it, it can never be taken back …
So, let’s get the really bad news out of the way first. It won’t make me feel better, but it will make room in my head for other market news that is not so bad.
Spain’s 10-year yield climbed as much as 26 basis points to 7.04 percent.
See what I mean. Although Spain is still receiving strong demand from investors, which is good, it, nevertheless, can’t catch a break on the bid. If this keeps up, Spain, Europe, the US, and the global economy will, by extension, have some really bad hair days in the future. Want more?
- Japan’s government could run out of money by the end of October, halting all state spending including salaries, pensions and unemployment benefits, because of a standoff in parliament that has blocked a bill to finance the deficit.
- The U.S. economy is facing $4 trillion worth of expiring tax cuts and automatic government spending reductions at the end of the year, and a standoff in Congress makes the chance of a compromise over the so-called “fiscal cliff” look dim.
This goes to show nothing changes as much as it remains the same. Politics are politics no matter on which side of the Pacific one resides, and those dang politics will spook the market more than it is now with another weak jobs report. Really? Only 80,000 jobs? Let’s all scream together. R U ready?
I am done now. If I thought I couldn’t take the weight of the bad news before, I really can’t take writing about it. Putting the failings of the world in words drains me, so I have to stop the outflow of energy, the bad juju making me think bad things. Instead, I will give my meager offerings of good news, such that it is.
The number of U.S. businesses and consumers filing for bankruptcy fell 14% in the first half of 2012 and could end the year at the lowest level since before the 2008 financial crisis.
Now, that makes me feel better. Not only do I feel warmer on the compassion side, I also feel this is a good sign for the US economy. Dare I say things are getting better out there?
Barclays was fined $453 million by U.S. and British authorities last week, becoming the first bank to settle in an investigation that is looking at more than a dozen other banks and submissions they made for calculating Libor rates. Libor rates are used in an estimated $360 trillion worth of financial contracts.
Darn, I had a moment there, but now I’m feeling weighed down again. Only a $453 million fine for a bank worth upwards of a $100 billion. That is sick, unfair, and hardly a punishment for the corruption demonstrated. These folks who mess around with our financial system for profit should pay dearly for their greedy behaviors. Wow! I feel lighter. Now if the government would only resurrect Glass-Steagall …
Trade in the day; Invest in your life …
