Market Impact of Debt Deal
Neil Cavuto weighs in
- Duration 4:16
- Date Aug 1, 2011
Neil Cavuto weighs in
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How a potential deal will affect the markets both here.
I'm pleased to be joined by Neil Cavuto senior vice president of business news managing editor.
And host of Your World w/ Neil Cavuto -- -- -- that I don't well so far the -- -- at least not.
The guarantee if out of markets finished but right now just have been hearing the Dow futures are 153 point -- seventeenth.
NASDAQ thirty the dollar -- already been trading up and rumors of a deal of course that means you have to have a deal but so far so good so it's.
If this holds it seems like it it could be a good day tomorrow.
In the markets it could be -- and I'm always leery of of jumping to conclusions and -- you and I've talked before about the time.
In in the fall of oh -- when when it looked like the TARP deal fell apart.
This is the stock market fell off about 800 points the biggest point decline in history.
Then -- You know congress quickly got back together -- -- with the understanding being -- the markets will stables and Marcellus.
Few months later they were -- -- thousand more points so we tend to focus on the moment and the moment says.
Better get a deal than no deal but it is a bad deal -- cuts aren't really.
And it's as real or is gender -- nor is near term has sought.
And keep in mind this is not to the ratings agencies liking.
They've been looking at least four trillion dollars in cuts over ten years.
You know it could be a case about -- remorse after the fact and sell off on that reality.
You know we got the GDP.
Numbers Friday at one point 3% for the second quarter and that was shocking enough but then you look back at the previous quarters -- the revisions.
You know point four from one point 9% for the first -- -- -- today Gene Sperling director of National Economic Council -- on FOX News Sunday He should the private sector forecasters.
Are saying that the growth in the second half could be 3% or above but He also said that uncertainty tied to the debt ceiling debate.
Is also having an effect on the economy do you buy that line from the administration now -- How long before the debt -- debate.
Who we didn't concerned about a double to have done.
None of this is affected Merck announcing the you know it's a couple of days ago -- it's laying off thirteen thousand workers.
Or Research in Motion a -- same 2000 workers.
Or just a few hours ago HSBC the dates and -- here in Europe announcing 101000 -- none of this has to do -- debt situation and asked to do.
With concerns things are slowing down and that's in the GDP we've had factory orders that are cascading.
There is a real genuine fear that we are stepping in its.
To another potential recession if not at the very least a slowdown -- significance here so that's weighing on the markets but.
You know you you you take care of your your good news where you -- this is good news of the market's near term as it looks like at least this -- -- But as you pointed out -- we have far bigger hurdles on the -- You've spent the last few days in this -- city yes although it hasn't been that -- up in the capitol rotunda little hot.
A lot of lawmakers little hot it is a lot I'll tell you know what is great air condition which here perspective now seeing this spectacle.
You know you've been up here many times obviously but this particular back and -- Usually -- New York what -- what do you think battles.
Well -- -- -- -- you're much better schooled in this whole soap opera nine.
How often it happens how -- we push ourselves to the -- And then with the hope legend goes this -- a few months ago.
Everything less and less and less I don't know about you but.
And -- isn't schooler Palestinian you do anything last minute you do you know I have to -- job then and I'm just concerned that in the end.
What we cobbled together here is a lousy deal it's three trillion dollars I I don't begrudge the fact that it.
Better to be cutting the not.
But we're really cutting the growth in something what's more a lot of it cuts I -- To be details later but.
I suspect in fear for most of them -- in the -- years I don't know you Brett.
I don't know what -- -- for breakfast tomorrow morning let alone what we're gonna do ten years from now and when those cuts are in the -- years.
I think that's when you get a potential case of buyer's remorse and people realize wait a minute been there done that.
Been burned by that.
Yeah Neil thanks so much for some odd scent certainly reflect a light and you can.