Wall Street Strategies
Hello! Sign in or Register


Afternoon Note

The Congressional Credit Card

By Charles Payne, CEO & Principal Analyst
8/28/2017 1:42 PM
Take a Free Trial
Try Charles' premium stock selection services free for 14 days. Check it out in real time! You will get actionable advice, trading ideas and email alerts.

The storm is slowing the market today and I’m not talking Hurricane Harvey. Instead, it is the brewing battle of raising the debt ceiling which derailed a fragile rally reminding investors that Washington DC dysfunction might be the most dangerous threat to the market.

Federal Reserve governor Jerome Powell warned about playing around and not hiking borrowing limits, saying the nation must be able to pay its bills. Of course, the first question is, are we really paying bills with borrowed money? Be that as it may, his comments spooked the market.

Ironically, the concern when it comes to the debt ceiling is the idea of rubberstamping another couple trillion dollar increase. The federal debt has grown to more than 100% of GDP and continues to loom as a landmine for future generations (and current as well).  Within the administration, some are promoting a “clean” hike but others are looking for accountability.

 I will admit the market would prefer a clean hike but the American public should demand piecemeal votes that actually look at how Congress will spend those new funds.

I think Congress will blink. The establishment isn’t ready for this kind of pressure or to stop spending money on boondoggles designed only for reelection.

Meanwhile, we all wait and hope for the best for folks in and around Houston. By the end of the week the focus will be on the jobs picture which has been stronger than expected most of the year.

If you need to raise cash make sure to reach out to your rep or call 1-800-286-1145.


Comments
miss your advice everyday. Grateful for all you have done in past years to help with investing decisions

Ana MCNALLY on 8/28/2017 2:01:03 PM
Congress is not doing the people's work. Their decisions do not affect them.

byron lynn on 8/28/2017 2:07:27 PM
The fact of the matter is OUR Gov't waste and flitters away money hand over fist. There is no real accountability, audits and evaluations as to ROI! The Federal Gov't is a bloated bureaucratic self serving entity with parasitic tendencies. I doubt it can be reformed.
The Politicians in cahoots with the lobbyists and crony capitalist will not give up their perks and privileges first and foremost which means they will not take on the serious reforms that need to be enacted in programs, transfer payments, economic engineering nor entitlements. It's a rampant runaway system populated by life long bureaucrats and Politicians who will do anything to stay in power.
There is so little trust in the federal system that it has infected the society as a whole and is threatening our cultural underpinnings of perseverance, hard work, upward mobility and unity.
I may be wrong but then again I may be right!

Garro on 8/28/2017 2:12:11 PM
Congress needs to stop crying about who the people chose to be our President and get to work. People are going back to work, and once the Un-AHCA is overturned, many small business owners can beef up people hours to full time. They are still being limited to 30 hours or less to avoid the additional expense. The consumer doesn't want to pay for it, so that means business owners can't afford to raise prices enough to cover it. Once this is done, including those who have gone back to work, there will be a lot more money going to the feds. If they lower taxes, even more, money will flow in. Since people are back to work, they can lower the budget for all social services except for retirees. We pay into that our entire working lives, they need to follow up on their promise. They had a chance to fix it for future generations, but Democrats chose to play politics with it instead. Congress needs to stop crying and get to work. The only thing keeping them from getting this done properly is their own lust for power. They should stop being so selfish.

Paulette Whinnery on 8/28/2017 4:04:46 PM
Congress needs to stop crying and get to work. The only thing keeping them from getting this done properly is their own lust for power. They should stop being so selfish. Amen

Charles Payne on 8/28/2017 4:06:40 PM
Congress needs to stop crying and get to work. The only thing keeping them from getting this done properly is their own lust for power. They should stop being so selfish. Amen and Amen!

Congress, both Republican and Democrat need to get behind President Trump's agenda. If they do not the U.S. electorate will need to tip the balance of power in President Trump's direction in the mid-term election so he can move forward!



congress

James Brandt on 8/28/2017 7:56:33 PM
 

Add Your Comment


Submitted comments are subject to moderation before posting.


Home | Products & Services | Education | In The Media | Help | About Us |
Disclaimer | Privacy Policy | Terms of Use |
All Rights Reserved.