Investors see the collapse of
the House GOP Plan as a positive and are driving up stock prices as if it is a
done deal on reopening the US government and raising the debt ceiling. The dysfunctional Republican caucus in the
House was not able to put together a plan that would pass with its members,
thus leaving the Senate Plan as the ‘only game in town’. House speaker Boehner has indicated that he
will put the bipartisan Senate Plan to a vote, almost assuring that the small
group of radical Republicans, whose voice has been heard in a loud way, will be
finally be silenced for the time being.
Details are currently being worked on, but things look very
positive. The Dow is up triple digits,
with other markets following along. Gold
is off slightly and oil is near unchanged.
Interest yields are up a small amount.
Once this crisis is in the rearview mirror, investors will be able to
focus on company earnings reports and other economic data.
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