ajtj99's Market Pulse

[jdaasoc]

We are entering the sweet spot of the election season. Congress is budgetary economic pump going with the spigot wide open just like in 2004. I got nothing against the pump because it gets GDP jacked up and some of the pump money comes back via tax receipts for all the services directly or indirectly provided by the pump dollars.

Only first hand evidence of this occurring is my wife who works for VA was told to spend almost $1M on outsourcing medical care for additional care for vets in her service to private health care professionals by June 30 at any reasonable cost and no excuses in getting it completed this fiscal year. This budgeted money is just for one hospital in one medical department. If you add up all the VA hospitals and various departments it is real additional money on top of what is already spent.

Only difference is this year interest rates are a lot higher and FED ever more cautious about inflation. Also, Bush was mostly above 50% in popular vote polls during most of presidential election and market still got very fearful in late summer.

If polls indicate poor chances of Republicans holding majority of seats in Congress in this election, it is just about only thing to hold market back from going 5-10% this year.
Iran, Iraq, China's appetite for US Bonds all secondary issues for market vs continuation of the political game as it is played now.