Is the Debt Ceiling Law Unconstitutional?
Written by John Lounsbury
The existence of a law which can create a
situation forcing the executive branch to violate one of more other
laws of the United States in order to comply is clearly
unconstitutional. Of course, if one of the other laws which would be
violated were determined to be unconstitutional and therefore void, the
first law could still be valid. However there may be no way that
situation might apply to the debt ceiling law. More on that later.
What We Read Today 16 October 2013
Econintersect: Click Read more >> below graphic to see today's list.
The top of today's reading list is
economist Barry Eichengreen's explanation of the calamitous nature of
U.S. debt default ........ and the last article is about the
possible breakout of the Australian dollar.
Market Commentary: Markets Close Near Session Highs, Reversal Tomorrow?
Closing Market Commentary For 10-16-2013
Markets slid along sideways for the
session's afternoon action awaiting word from the US House Of
Representatives after the Senate sent the latest bill to them. Just like
a bunch of irresponsible high school teenagers, they wait until the
last moment to get their homework done - pathetic!
Markets closed near their highs for the
day on lower than normal volume suggesting we will have a negative
correction tomorrow - stay tuned.
Day 16 of Government Shutdown - End In Sight?
Econintersect: No Consumer Price Index data today from from the BLS, but it appears there is a deal to end the government shutdown.
October 2013 Beige Book: Rate of Economic Expansion Continues Unchanged
Econintersect: The consolidated economic report from the 12 Federal Reserve Districts (Beige Book) characterizes economic activity that "
economic
activity continued to expand at a modest to moderate pace during the
reporting period of September through early October". The previous report said "
continued to expand at a modest to moderate pace during the reporting period of early July through late August".
Please see the end of this post for words the Federal Reserve uses when the economy is entering a recession.
Market Commentary: Markets Riding High On US Debt Solution Optimism
Opening Market Commentary For 10-16-2013
The averages by noontime has more or less
settled into a sideways consolidation mode awaiting confirmation of a
debt solution deal between the waring US law makers.
The markets are enjoying plus 1 percent
gains for the day as optimism has not swayed much since this morning
'Hopium' euphoria took hold. Savvy investors are still very much in
reaction mode hoping to push the buy/sell button correctly when the time
come.
Bus Accident in India Injures 25 French Tourists
At
least 25 French tourists suffer serious injuries as a bus ferrying them
collided with a truck in Indias northwestern state of Rajasthan on
Monday. The truck coming from the opposite direction hit the bus so hard
it overturned.
Market Commentary: Rumors Of A Deal Sends Markets Soaring On The Opening bell
Opening Market Commentary For 10-16-2013
Premarkets were up on rumors that a plan was near, but you already knew that didn't you? Not much to add here.
Markets opened up and continued pushing
higher as bullish euphoria was exploding among the BTFDers. Good volume
but expect volatility changes about noon and just before the closing
bell to coincide with US law makers speeches.
A Word from This Newsletter's Sponsor
URGENT: 30 Powerful Men Meet to Get Details of
Next Market Collapse
A U.S. attorney recently obtained some urgent information
about the timeline of the next stock-market collapse.
It comes from a closed-door meeting at the New York Stock
Exchange, inside a highly secured boardroom on the 6th floor.
A View of Bank Loan Performance
by Tara Sullivan and James Vickery - Liberty Street Economics, Federal Reserve Bank of New York
U.S. banks experienced a rapid rise in
loan delinquencies and defaults during the 2007-09 recession, driven by
rising unemployment and falling real estate prices, among other factors.
More than four years on from the official end of the recession, how do
things look now?
Market Liquidity during the 2013 Selloff in Fixed-Income Markets
by
Tobias Adrian, Michael Fleming, Jonathan Goldberg, Morgan Lewis, Fabio
Natalucci, and Jason Wu - Liberty Street Economics, Federal Reserve Bank
of New York
Long-term interest rates hit record-low
levels in 2012 but have since increased substantially. As discussed in
an earlier post, the sharpest increase occurred between May 2 and July 5
of this year, with the ten-year Treasury yield rising from 1.63 percent
to 2.74 percent. During the May-July episode, market liquidity also
deteriorated. Some market participants have suggested that constraints
on dealer balance sheet capacity impaired liquidity during the selloff,
amplifying the magnitude and speed of the rise in interest rates and
volatility. In this post, we review the evolution of Treasury market
liquidity, evaluate whether dealer balance sheet capacity amplified the
selloff, and examine what motivated dealer behavior during the episode.
Investing.com: Technical Analysis 15 October 2013
Investing.com Technical Analysis (as of Tue, 15 October 2013 05:00pm EDT)
by Investing.com Staff, Investing.com
Below, technical overviews and analysis for key stock indices, commodities and
currency
pairs, based on market activity at the close of the 15 October 2013
U.S. session. This information is a comprehensive summary derived from
simple and exponential moving averages along with key technical
indicators shown for specific time intervals.
Barack Obama vs. Abraham Lincoln
Written by Frank Li
After comparing President Obama with (1)
President Truman (Barack Obama vs. Harry Truman) and (2) President Nixon
(Barack Obama vs. Richard Nixon), it's time for me to compare him with
President Lincoln for two main reasons:
Terminal Velocity (24) 'And Now the End is Near'
Written by Adam Whitehead, KeySignals.com
Terminal Velocity 'What Goes Around, Comes Around' observed a scenario
developing; in which the epiphany of Larry Summers emerging as the next
Fed Chairman coincided with the epiphany of an Emerging Market Debt
Crisis similar to the one in which he served on the '
Committee That Saved the World'
in 1997/98. In the weekend of this epiphany, political events in
America and Russia conspired to end Summers' campaign to become the next
Fed Chairman.
Read more >>
Twitter's IPO: #Countmeout
Money Morning Article of the Week
by Keith Fitz-Gerald, Money Morning
It
used to be that companies went public after achieving a modicum of
success. There were business models, calculations, and plans, all based
on real results and proven success.
Now it's all about potential.
There are still plans and projections, but proven success has been hard to come by.
Rich Get Richer, Poor Get Poorer
Weakest Economic Recovery on Record Means the Rich Get Richer, the Poor Get Poorer in America
by Michael Lombardi, Profit Confidential
According to a study by economists at the
University of California, Berkeley, the Paris School of Economics, and
Oxford University, the income gap in the U.S.
economy in 2012 was similar to what it was in 1920s! (Source: Associated Press, September 10, 2013.)
In 2012, the income of the top one
percent of earners increased by almost 20%; for the bottom 99%, their
income only increased by one percent.
But that's not all dot-dot-dot
Infographic of the Day: Halloween Sales & Trends
How much money do people spend on Halloween each year? Is it a big earner. This infographic breaks it down.
Employers Face Challenges from Delayed Retirements, Macy's to Open on Thanksgiving
from Challenger, Gray & Christmas, Inc.
A just-released survey showing that more
Americans age 50 and older plan to delay retirement presents some unique
challenges to the nation's employers. In one respect, companies will
benefit from these workers' knowledge and experience, according to John
A. Challenger, chief executive officer of Challenger, Gray &
Christmas, Inc.
Gauging the Momentum of the Labor Recovery
by Mary C. Daly, Bart Hobijn, and Benjamin Bradshaw - FRBSF Economic Letter, Federal Reserve Bank of San Francisco
Federal Reserve policymakers are watching
a broad set of indicators for signs of 'substantial' labor market
improvement, a key consideration for beginning to scale back asset
purchases. One way to find which are most useful is to focus on how well
movements in these indicators predict changes in the unemployment rate.
Research suggests that six indicators are most promising. They offer
evidence that the recovery has more momentum now than a year ago, a
strong signal that the labor market is improving and could accelerate in
coming months.
Only One Man Can End the Government Shutdown
Econintersect:
Not only can Rep. Eric Kantor (R, VA), or his designated
representative, make the decision that would almost certainly reopen the
federal government,
he is the only person who can do so. In an astounding
demonstration of the manipulation that can allow a small minority to
dictate the future course of the country, the House Rules committee
passed a resolution late in the evening of 30 September 2013 (but dated
October 1) changing a standing house operational rule so that only Eric
Kantor is allowed to make a motion to vote on reopening the government.
Russia is the World's Most Heavily Policed Country
by Felix Richter, Statista.com
If you travel to Moscow, you may notice
that the Russian capital has a higher than average police presence.
According to the United Nations Office on Drugs and Crime (UNODC),
Russia is the world's most heavily policed country with 564.6 officers
per 100,000 of the population.
