Retail Shoppers Have Disappeared

The government shutdown impacted retail sales.  With the next scheduled crisis just after the holidays, current spending levels authorized through 01/15/2014 and the debt cushion extended through 02/07/2014, shoppers aren't likely to loosen the purse strings this holiday season. 

More - "Do you want to save 10% on your purchase today?"  "No."

A Deal is Coming

GOP insiders say a deal will be announced soon.

Debt-Limit Deal Coming Down to the Wire

Looks like Mr. Boehner has lost control of his House.  It's just astounding that we're even at this point, again.  These leaders continue to fail at their job and continue to get elected. 

It's Luke Deja Vu All Over Again

We've seen this play out before and we're doing our best to do it over again.   

Are Politicians Profiting Off Of the Market Volatility They’re Creating

When I got home from grocery shopping, I checked to see how the stock market closed.  It closed up today.  The consensus is that the market closed up due to speculation that a debt-deal was eminent.  Lately every day is different.  One day it’s down due to a lack of an agreement.  The next it’s up due to the speculation of an agreement.  This made me wonder if our politicians are investing long and short contingent on the sentiment they share with the media. 

60 Minutes did a story in 2011 on high-level government officials profiting from insider trading, making government deals and investing accordingly before the information was public.  This got Washington up in arms and they finally decided to pass the “Stop Trading on Congressional Knowledge” Act or the “STOCK” Act.  You know someone gets paid a lot of money to come up with acronyms in Washington?  That’s an “essential” job, of course. 

Congress passed the bill and everyone patted themselves on the back.  That was, until, they realized enforcing it was going to be hard.  So, on the DL (down-low), Congress, both Democrats and Republicans, quickly passed an amendment on April 12 and 13, 2012, gutting key provisions of the act and President Obama signed it into law the following week. 

Essentially the amendment to the STOCK Act removed requirements to create a searchable database listing disclosures of high-level officials and file their disclosures electronically.  This makes oversight virtually impossible.  Yes, insider trading is still illegal, but without critical oversight, who knows who’s profiting off the rollercoaster we’ve been riding.  Insider trading was illegal prior to 2011 and clearly the oversight and adherence to the law was questionable.   

This makes us wonder if politicians are profiting off of the market volatility they’re creating with the government shutdown and debt deal negotiations.     

Kicking the Can Down the Road

The government doing what the government does best.  It's like that couple that's always on a break cause neither is courageous enough to officially end the relationship or that person who's always telling you they're going to start dieting and working out "next Monday".   

Obama Likely to Nominate Janet Yellen for Fed Chair

President Obama is likely to announce Janet Yellen as his nomination to replace Ben Bernanke.  Yellen is likely to accept and run the Federal Reserve much the same way Bernanke has, continuing QE3 ($85B/month Treasury purchase program, historically increased transparency).   

Don't Be Like Our "Fearless" Leaders in Washington

"There's an absence of any signs that political leaders are willing to face this problem and address and restructure these obligations," billionaire Paul Singer said.  If you're having financial troubles, don't follow Washington's lead.  Face the problem and come up with a plan to address them.