Posts Tagged ‘government shutdown’

Notes From Underground: The Government Shutdown, Or Lots of Media Drama

January 16, 2019

While I was off visiting my children and grandchildren, the government took its own hiatus. However, while I am back at it, the government is still shuttered (partially, at least). For years the pundits have ranted about the negative effects on the economy (and some even singled out the markets). For all of the noise, the bond market is stable and stocks have rallied 8 percent since the shutdown began on December 22.

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Notes From Underground: Back From Vacation and Was Subjected To the Government Shutdown

October 7, 2013

As I drove along the Blue Ridge Parkway many of the Federally manned information spots and federally run conveniences were closed. But it did not detract from the grandeur of the Carolina mountains and majestic valleys. The Parkway itself was an allegory for the markets as it winds it way a forest of trees with danger all along the way. It is best to stop at the lookouts along the way as an astute trader/investor would take the time to analyze charts to see where the road leads. The present standoff in Washington has brought profits to the SHORTS, but as Friday’s rally revealed. This market is fraught with danger for bulls and bears alike. More important than the shutdown of some federal government operations is the looming issue of the DEBT CEILING. Many analysts have rightfully pointed out that the government defaulted in 1979 and although Treasury bill yields rose 60 basis points, the overall effect was minimal. Beware of faulty historical correlations.

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Notes From Underground: Yra Offers a Modest Proposal

October 1, 2013

First and foremost: This week’s postponement of the unemployment report has provided me with an idea. Because of the fear of data leaks from the sequestered media and the influence of high frequency trading and headline algorithm readers, I HEREBY PROPOSE THAT ALL GOVERNMENT DATA RELEASES SHOULD TAKE PLACE ON SUNDAY MORNING, OR IN THE SPIRIT OF PAUL VOLCKER, SATURDAY EVENING. By releasing the Federal data on the weekend, market participants and journalists could analyze the data and do their releases prior to the Asia openings on Sunday night. This would make the markets more efficient but of course less volatile. I know it will mean less opportunity for the high-speed correlative traders but the result would be to provide the markets with more causation and less correlation and hopefully return a modicum of trust  to the retail trader who appears to be missing from the present market environment. Just trying to bring some sanity to the madness that currently exists on a day-to-day basis. The closing of some government functions may allow some thoughts on alternative ideas. Just thinking outside the beltway.

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