Do you think the market will react favorably if Wisconsin Governor Scott Walker wins reelection today?
If this happens, will the market interpret it as a sign that fiscal discipline is making a comeback at the state and local level -- and that the taxpayers have the upper hand in this so-valled battle with labor (as this past weekend's WSJ story suggested)?
Re: Scott Walker
cat tail
6/5/2012 10:49:14 AM
This will be interesting to watch. And yes, I think it could demonstrate a feeling about where voters want the country to go. And if they say "tighten up the belts," the market could like that.
Good for American Economy not much effect on the Markets.
back2basicz
6/9/2012 6:21:11 AM
Noreen,
The Market has been reduced to nothing more than a Monetary Easing Addict.
If we get the expected easing by the Fed (close to $700 Billion)on June 20th then we rally.Else we sink.
If you had asked me whether this Re-election is good for the American Economy(long-term) and the American People then I would said Yes.
This would most definitely ensure that Public Unions all over America will go massively on the backfoot.It also ensures that the Europeanization of America (The Extremely wasteful State takes on larger and larger chunks of the Economy) is dead.
Most Public Employees have Pensions,Salaries and Benefits which are unsustainable today.
What is unsustainable will collapse.
Its good to see that Americans are placing a premium on Work Culture(which is practically non-existent in most Government Jobs today).
Its a fact that Americans are ready and willing to work much-much harder than Europeans today.
And they are ready to support politicians who act tough with Public Unions like in Case of Wisconsin and Scott Walker.
Most interesting article from the BBC do read.
Over-paid Public Sector workers are getting fired because of their intransigent behavior.
http://www.bbc.co.uk/news/magazine-18332369
I was watching a most Interesting presentation from INET
What Happened to the American Dream?
http://www.youtube.com/watch?v=_cBcSTQByrg&feature=relmfu
Regards
Ashish.
There are growing reports that both the Chinese and Brazilians might stimulate their economies.
- The 5/30 NYT reported that the Chinese government is implementing a cautious infrastructure spending program. It includes a new round of major investments worth $150 billion or more on such projects as hydropower stations, four new airports, and three renovations or expansions of big steel mills.
- Last Wednesday, Brazil's central bank dropped its overnight interest rate to a historically low of 8.5%. The real has dropped 25% since last July, which should boost exports.
Do you think one or both of these actions could boost the US stock market?
Re: China and Brazil
cat tail
6/5/2012 10:50:52 AM
We are all so globally connected - and with Europe's recession deepening (as the manufacturing indices showed last week - then growth in China will be beneficial both here and in many parts of Europe.
I just don't see China repeating its huge 2008-09 stimulus. It's growth rate is down, and coupled with debt from the last stimulus, it just doesn't have the same wiggle room to launch a new spending surge.
Austerity more than Stimulus is the Buzz word today
back2basicz
6/9/2012 6:41:44 AM
Noreen,
Both China and Brazil(alongwith India,Indonesia,South Africa and Russia too) are all suffering from massive Inflation.
Its worst in India but China and Brazil are also facing it.
Sure,they are all slowing but the Bigger worry (even today)is Inflation.
So we can't expect them to deliver a Massive Stimulus (like what the Market needs for a massive Boost) atleast until Food and Crude Oil Prices fall much-much further.
If Brent Crude Oil does fall below $80/Barrel then the chances of a Stimulus program (from the Developing world) go up ManiFold.
Till then it will a small Rate Cut here and a Small Rate cut there;coupled with Small Stimulus Programs which will not be sufficent to move Global Markets substantially.
India (alongwith Europe and the State Govts in America) are actually implementing Austerity today.
My bet is everyone checks to the Federal Reserve to deliver BIG either in June,July or August.
Here's a list of all the Price Increases that India has faced in the last two months alone.Its mind-boggling!!!
http://www.scribd.com/doc/87695628/Double-Digit-Inflation-is-Back-APRIL-2012
Regards
Ashish.
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