Biotech Values

[bladerunner1717]

It seems, Dew, that I'm not the only one concerned about the effect on equities of a possible shut-down of the government by the Rand Paul/Jim Demint crowd.

From David Rosenberg:


What we don’t see discussed that much are the spending cuts coming our way
and these indeed will show up directly in GDP. There’s a new Congress in town
folks, and a showdown is coming with regard to the debt ceiling file. By the time
the second quarter rolls around, it will be time to buy volatility, S&P 500 puts,
and gold. Right now the markets are overpopulated with growth bulls, which is
why it is essential to practice safe investing.
The front page of the weekend WSJ runs with Budget Brawl Looms in Congress
is a must read. The article states:
“Senate Republicans, facing an uproar from tea-party activists, rose up late
Thursday to scuttle a 1.1 trillion dollar spending bill ... In the process, they
showed the power fiscally conservative activists now hold over even the most
seasoned lawmakers.”
IN THIS ISSUE

December 20, 2010 – BREAKFAST WITH DAVE
Page 2 of 8
Page A5 is also worth a look ? Package Adds Fuel to Fights Over Spending, Tax
Policy. To wit:
“Republicans are pushing for more spending cuts as the way to narrow the
deficit. The disagreements among the White House, Senate Democrats and
Republicans could all converge as the deadline for raising the debt ceiling nears
in the first half of next year ... Administration officials say the debt ceiling must
be raised so the U.S. can fund its obligations next year. Republicans have said
they will demand major spending cuts to back any plan.”
So tell us now ? is gridlock good?
We should add that the Saturday NYT was also on top of this issue ? A Budget
Battle Looms Next Year (see the front page). Same conclusion:
“The 2011 spending fight could be complicated by the need to raise the federal
debt limit to avoid a federal default ? a vote that many new Republican
lawmakers have indicated they would not make. Republicans say the debt limit
vote could also present an opportunity, allowing them to tie a package of
spending reductions to the debt increase to make it more palatable.”


Bladerunner