Tuesday, September 3, 2013

Boehner, Pelosi Side with O'Bomber, Tank Markets

This past Friday, nearly the entire civilized world believed that US bombs would be falling on Syria over the weekend.

Abruptly, n Saturday, the president, in a true CYA moment, decided to get authorization from congress, which, according to our constitution (remember, we still have one, if in name only), is a necessity in order to attack any entity that does not pose a serious, immediate threat to the nation, and Syria easily qualifies.

With the congress winding down its month-long vacation (somebody remind us why are we paying them), a vote on the matter of whether or not to use offensive weapons against Syria couldn't occur much before September 9, the date upon which congress will officially resume to be in session. Thus, the inevitable bombing and unofficial start to World War III would have to wait.

On Tuesday, the house leadership of both parties - Nancy Peolosi and John Boehner - were back on the Hill, each making statements in support of the Bomber-in-Chief's proposal to use force against Syria.

So, if one is to believe in what the tea-leaves tell us, the president will get his authorization, despite some grandstanding by Tea Party members on the right and anti-war types on the left. Never mind that only nine percent of Americans support any kind of military action against Syria. The one-party rulers in Washington will have their way and theirs is the way of war.

Wall Street didn't take the news kindly. Up sharply early on, thinking that maybe, possibly, congress would not give the president the green light, markets did an about-face after the Boehner/Pelosi comments and stayed down for the remainder of the session. Everybody put away their "Dow 15,000!" hats and got back to thinking about how spiked oil and gas prices might negatively affect the economy, how bombing a nation essentially tearing itself apart in a civil war would benefit US interests, and how this might weigh on decisions surrounding the budget, the debt ceiling and whether the Fed would taper its bond-buying at its next meeting (Sept. 17-18).

With that, traders wiped 100 points off the Dow, albeit on volume that was hardly indicative of a back-to-work mentality. Come to think of it, since Obamacare is making work in America largely a part-time experience, maybe lower volume and shorter trading sessions might be just the ticket.

Dow 14,833.96, +23.65 (0.16%)
NASDAQ 3,612.61, +22.74 (0.63%)
S&P 500 1,639.77, +6.80 (0.42%)
NYSE Composite 9,333.50, +62.84 (0.68%)
NASDAQ Volume 1,568,192,750.00
NYSE Volume 4,111,344,250
Combined NYSE & NASDAQ Advance - Decline: 4025-2691
Combined NYSE & NASDAQ New highs - New lows: 130-89
WTI crude oil: 108.54, +0.89
Gold: 1,412.00, +15.90
Silver: 24.43, +0.916

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