Fox26:  End of Debt Ceiling Date Suggest Higher Markets – Pt. 1

Fox26: End of Debt Ceiling Date Suggest Higher Markets – Pt. 1


TO RUN IN THAT AREA UNTIL DECEMBER.>>>AS WE’VE BEEN TALKING THIS MORNING, THE END OF THE GOVERNMENT SHUTDOWN, ALONG WITH CONGRESS RAISING THE DEBT CEILING, SHOULD MAKE WALL STREET A LITTLE HAPPIPIEER THIS MORNIN. IT ALREADY HAD A POSITIVE IMPACT ON THE OVERSEAS MARKETS. AND FINANCIAL ANALY LANCE ROBERTS,HO IS ON THE RADIO AT KSESEV AM IS TAKING TIME TO BE WITH US. GOOD MORNING. THE DEAL REACHED BY CONGRESS AND SIGNED BY THE PRESIDENT IS GOOD NEWS FOR OUR 401(K)’S. IS THAT RIGHT?>>WELL, I DON’T KNOW IF THERE’S REALLY BEEN MUCH OF A DIFFERENCE DURING THE DEBATE. STOCKS ARE HOVERING NEAR ALL TIME HIGHS AS OF TODAY. REALLY THE MARKETS HAVEN’T THOUGHT MUCH OF THIS WHOLE ARGUMENT THAT’S BEEN GOING ON WITH THE GOVERNMENT SHUTDOWN AND HAVE NOT BEEN WORRIED ABOUT A POTENTIAL DEFAULT, SOMETHING THAT YOU AND I HAVE TALKED ABOUT BEFORE. SO THE REAL ISSUE BECECOMES WHA WAS THE WORRY?>>NOW, LANCE, YESTERDAY THE STOCK MARKETS KIND OF JUMPED UP WITH THE NEWS THAT WE MIGHTHTAVE A DEAL. WHAT DO YOU EXPECT AT THE OPENING BELL THIS MORNING ON WALL STREET?>>WELL, RIGHT NOW WHAT WE’RE LOOKING AT IS FUTURES ARE DOWN JUST SLIGHTLY, VERY FLAT. AND A LOT OF THE MOVEMENT IN THE MARKET YESTERDAY WAS IN ANTICIPATION OF THE DEAL BEING DONE. NOW WE MIGHT GET A LITTLE BIT OF THE — KIND OF THE SELL THE NEWS MENTALITY IN THE MARKET. THE FEDERAL RESERVE IS CONTINUING TO BUY THEIR BONDS. VERY LIKELY THE MOMENTUM BEHIND THE MARKETTS AND THE PUSH WILL PUSH STOCKS HIGHER THROUGH THE END OF THE YEAR, PARTICULARLY AS WE MOVE INTO OUR SEASONALLY STRONG TIME OF THE YEAR. IT WON’T BE A STRAIGHT UP SHOT. IT WILL BE BUMPY. WE COME BACK TO THE DEBATE ARGUMENT ISSUE STARTING IN DECEMBER.>>OKAY. THERE WAS FITCH SAYING YOUR CREDIT RATING IS GOING TO GO DOWN. WHAT DOES YESTERDAY’S DECISION MEAN TO OUR CREDIT RIGHT NOW IN THE COUNTRY?>>WELL, THAT JUST DEPENDS ON WHO YOU TALK TO. CHINA JUST DOWNGRADED OUR DEBT FROM A TO A MINUS. I’M NOT SURE THAT MEANS ANYTHING. BUT, YOU KNOW, THE ISSUE BECOMES ULTIMATELY IS THE INCREASE IN OUR DEBT. WE’LL JUMP ABOVE 17 TRILLION, PROBABLY 17-1/2 TRILLION. WE’LL BE CLOSE TO 19 TRILLION IN DEBT BY THE END OF NEXT YEAR. THE CRAZIEST THING THAT WAS SAID DURING THE DEBATE WAS WE HAVE TO RAISE OUR DEBT LIMIT SO WE CAN PAY OUR DEBT. MAYBE THERE’S PART OF THE PROBLEM THERE. IT’S NOT GOING TO MEAN ANYTHING TO OUR DEBT LIMIT IN THE SHORT TERM — DEBT RATING IN THE SHORT TERM, BUT LONGER TERM IT WILL BE AN ISSUE.>>ALL RIGHT. FINANCIAL ANALYST AND HOST OF

Leave a Reply

Your email address will not be published. Required fields are marked *