Stocks take off in hopes of Washington breakthrough

wallstreet.jpgWell, breakthrough is pushing it - the Republicans are proposing to raise the debt limit, but only for another six weeks, to Nov. 22 (Happy Thanksgiving!). How the extension would magically break the logjam was not explained. Also, no mention of a continuing resolution that would reopen the government. Already, Senate Majority Leader Harry Reid has said that Democrats would not negotiate until federal workers return to work. And yet, none of it seemed to dampen the hopes of investors - the Dow finished up 323 points, to 15,126. That at least starts to pare the losses of recent weeks. Perversely, a recovering stock market could lead a few dozen House Republican wackos into believing that their dangerous antics will not affect the financial world all that much. Beyond the upbeat headline number, however, is extreme volatility, especially in the bond market. Washington governance is basically in shambles and at some point that will impact the private sector, which of course means you and me.

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Mark Lacter
Mark Lacter created the LA Biz Observed blog in 2006. He posted until the day before his death on Nov. 13, 2013.
Mark Lacter, business writer and editor was 59
The multi-talented Mark Lacter
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