So we awake to the first trading day in the post-debt ceiling debacle, where a deal has been reached, the nation will not go into default (today), and in order to make Obama's prophecy be realized, the markets should provide a nice healthy bump to prove he was right about impending doom...
Well, turns out Obama was right about impending doom. But it has nothing to do with the debt ceiling, and everything to do with his hand-crafted leftist economy:
Stocks reversed course Monday after a weak reading on manufacturing activity for July overshadowed progress on a debt deal.
The Institute for Supply Management reported that manufacturing activity dropped to a reading of 50.9 in July from 55.3 in June. The reading was a big miss, as economists had expected manufacturing activity to remain steady.
A recent report on durable goods orders in June disappointed the market last week, so pressure for manufacturing activity to at least stay steady was high.
The government reported that construction spending rose 0.2% in June after tumbling 0.6% in May. The latest update was a relief after a slowdown in growth over the past six months, with April showing a 0.6% decline in spending.
As of 12 noon EST, the DOW is down almost 120, the NASDAQ is -28, and the S&P is -14. Pretty much a 1% fail across the line.
Another frustration for The One, as the heartbeat of capitalism declines to dance to his tune. Expect him to demonize and demagogue Wall Street even further in retaliation for making him look stupider than he already is.
Like a poor magician, Obama vents his rage on the rabbit, as opposed to actually trying to learn the trick...
