Obama Kabuki Wrecking Your 401(k)
Posted on | July 27, 2011 | 4 Comments
Let’s see: Dow Jones Industrial Average dropped another 91 points Tuesday, down to 12,501.30, having lost 223 points in the past three sessions. If stocks are down, then bonds are up, right? Nope:
Treasuries fell [Tuesday], eroding a gain from [Monday], as President Barack Obama threatened to veto House Speaker John Boehner’s plan to raise the U.S. debt ceiling and reduce spending by $3 trillion.
The U.S. may have its top-level credit rating cut as politicians struggle to reach an agreement on how to increase the federal borrowing limit, a step needed to keep paying its debts, according to BlackRock Inc. and Loomis Sayles & Co. The Treasury is scheduled to sell $35 billion of five-year debt today, the second of three note auctions this week.
Hmmmm. Stocks down and bonds down. So . . .
Gold futures rose for the third straight session as the prolonged U.S. debt stalemate boosts demand for the precious metal as a haven. . . .
Gold futures for December delivery rose $4.90, or 0.3 percent, to settle at $1,619.30 an ounce at 1:48 p.m. on the Comex in New York. Earlier, the price fluctuated between gains and losses. The August contract reached a record $1,624.30 yesterday.
You should have listened to Glenn Beck!
UPDATE: And gold goes even higher:
Gold forged a record high above $1,625 per ounce (in London) on Wednesday, as investors parked their cash in the precious metal in the face of heightened concerns over a potential US default.
The price of gold struck $1,625.70 an ounce at about 0600 GMT on the London Bullion Market, beating the previous record of $1,624.07 that was hit on Monday.
“The threat of default by the world largest economy has led gold to a fresh peak above $1,625 this morning,” said FastMarkets analyst James Moore.
(Hat-tip: Don Surber.)
PREVIOUSLY:
- July 25: Spooky Kabuki: More Free Primetime TV for the Summer Bummer Obama Drama
- July 25: BLACK MONDAY? Obama’s Debt-Ceiling Crisis Strategy Could Sink Wall Street
- July 22: What Happened to ‘No Drama Obama’?
- July 22: The Terrible Legislative Catastrophe No One Will Remember in November 2012
- July 17: Obama Wants ‘Largest Deal Possible’
- July 15: Gingrich Advises GOP on ‘Bully’ Obama: Stop Negotiating and Start Legislating
- July 14: The Vicious Jackals Are Planning to Screw Us Over (But You Already Knew That)
- July 12: Obama Declares Moral Bankruptcy: ‘No Social Security Checks Next Month!’
- July 7: Obama: ‘Hey, Grandma, There’s Still Room for You Under This Bus!’
Comments
4 Responses to “Obama Kabuki Wrecking Your 401(k)”
July 27th, 2011 @ 11:56 am
At least I’ve got +30 years for it to recover. But if I was <5 away from retirement I'd be pretty ticked about the stage show.
July 27th, 2011 @ 12:57 pm
I’ve stopped paying attention to the stock market. it’s completely disconnected from economic reality thanks to the Fed and quantitative easing.
July 27th, 2011 @ 9:18 am
[…] UPDATE: From Robert Stacy McCain: “Obama Kabuki Wrecking Your 401(k).” […]
July 27th, 2011 @ 4:18 pm
I think I’m lucky in that I’m in my early twenties. I have cast iron evidence that I’ll never retire, because the public pensions aren’t there and the private ones will be seized. Social Security will not exist, inasmuch as it ever did.
Yeah, it sucks, and I worry about my health later on and whether someone else will hire me when I’m 70, but it has its upsides. I will never, ever trust that the government will take care of me and find myself at 60 realising that all my plans have gone to hell.