Lou Dobbs: Blog

Debt Ceiling Talks: Part Deux - A Farce!

May 16, 2012

The president today met with leadership of both chambers of Congress to push is "post-it" economic "to-do" list. Obama attempting to get both House Speaker John Boehner and Senate Majority Leader Harry Reid on to adopt his game plan to aide the still fragile economy.

But with much of the media attention leading up to the meeting focused on the debt ceiling, Mr. Obama and Speaker Boehner reportedly had a testy exchange about the future of the nation's debt limit and spending.

According to reports, Boehner asked Obama if he was proposing that Congress increase the debt limit without corresponding spending cuts. The president replied, "Yes," the Boehner aide said. At that point, Boehner told Obama, "As long as I'm around here, I'm not going to allow a debt-ceiling increase without doing something serious about the debt."

Shortly after the meeting, White House Press Secretary Jay Carney chimed into the debate.

"You have to ask the Speaker of the House whether or not he intends or he believes that it is the right thing to do for the American people or the American economy to play chicken with the full faith and credit of the United States of America," Carney said.

Lou Dobbs appearing on FOX Business Network's "Market Now" had to hold back full blown laughter at the charade playing out in Washington DC.
.

Posted by Lou Dobbs Staff at 4:00 PM

Link to this entry

Email to a friend

The Greek Debt Crisis Continues to Weigh on US Stock Prices

May 16, 2012

The slump on Wall Street continues as Greek banks get cutoff from European Central Bank funding.

The Dow Jones Industrial Average fell 33 points to 12598.55, Nasdaq Composite gave up 20 points, and the S&P 500 shed 6 points on the day.

Stocks today initially moved higher on better than expected news on the US economy. Housing starts last month jumped 2.6% to higher than anticipated annualized rate of 717,000. Building permits though retreated 7% from 3-1/2 year highs reached back in March.

The other good news, industrial production on April grew 1.1%, marking the fastest acceleration in factory output in more than a year.

The mood on Wall Street however quickly turning on reports that the European Central Bank stopped providing liquidity to some Greek banks. The ECB saying that until the Greek government is able to formulate a plan to recapitalize its lenders, its own central bank will have to go it alone in keeping the banking industry solvent.

That development compounding fears about Greece leaving the European Union, something German Chancellor Angela Merkel said she didn't want to see happen.

And the Federal Reserve today released the minutes from last month's FOMC meeting. The minutes showing that committee members are still concerned about the strength of our economy. Some investors taking note that a larger number of members are keeping the door open to further monetary easing.

Those headlines combining to fuel another round of safe haven buying in the dollar. Strong demand for the relative safety of the dollar pushing it higher for a 13th straight session, extending its longest string of gains since the mid 1980's.

That dollar strength continued to pressure commodities prices. Gold today finished down a dollar - closing at a 10-month low of less than $1,540 an ounce.

And crude oil prices retreat for a fourth straight session. The June futures contracted ended down more than a dollar, settling at a six-month low of less than $93 a barrel.

Posted by Lou Dobbs Staff at 3:00 PM

Link to this entry

Email to a friend

Obama's Numbers Are Making Democrats Nervous

May 15, 2012

Alarm bells are going off within the Democratic party, alerting members that the president's handling of the economy and his evolved position on same-sex marriage may cause Obama to lose his re-election bid.

The new Times/CBS poll round that Romney leads by 3 points overall. That's a statistical tie taking into account the poll's margin of error. But the shifts with women, moderates and independents are all statistically significant. Obama lost 5 points with each of those demographics.

What should be even more troubling for the Obama administration is that those recently polled are callbacks of those contacted in the April poll that showed the two candidates in a dead heat.

What changed? A lot!

His issues began with the "open-mic" gaffe with former Russian President Dmitry Medvedev in which he was overhead offering more flexibility after he won his re-election.
Then there were the Supreme Court hearings on Obamacare and the president's challenge to the justices. That was followed by the DOJ needing to submit a homework assignment stating whether or not the president believed Federal judges had the constitutional right to roll back laws passed by congress.

Some of the issues had little direct connection to the White House but still occurred under the Obama's watch; the $823,000 GSA convention in Las Vegas, the Secret Service Agents getting wrapped up with prostitutes in Columbia and Brazil, and let's not forget about AG Eric Holder's still ongoing battle with Republicans regarding Holder's knowledge and handling of the ATF Operation "Fast and Furious."

And now gay marriage is at the center of the media spotlight. The president's evolved position on gay marriage may have won him favor with Hollywood and his base, so far garnering him $21 million in new campaign donations. But the position, for right or wrong, is costing him in the eyes of the broader electorate.

One in four registered voters say they are less likely to vote for President Obama in November because he expressed support same-sex marriage, according to a new CBS News/New York Times poll.

Posted by Lou Dobbs Staff at 4:00 PM

Link to this entry

Email to a friend

Boehner's Shot Across The Bow

May 15, 2012

Where it be a feeling that he's been left out of the limelight amidst the presidential campaign or perhaps he's brewing for a fight; House Speaker John Boehner today warned that when it's time to raise the debt ceiling again, Democrats had better come to the table ready to cut spending.

Boehner in a prepared statement saying that there will have to be "cuts and reforms" exceeding the amount of the increase to the nation's debt limit.

"It's the right thing to do," Boehner said in prepared remarks. "This is the only avenue I see right now to force the elected leadership of this country to solve our structural fiscal imbalance."

That fight could happen by early 2013, or even as early as this fall. Which would add a new issue to the presidential campaign.

Treasury Secretary Tim Geithner stepped squarely into the brewing battle calling for a simple increase to the debt ceiling without the usual political rhetoric.

"Only Congress, of course, can act to raise the debt limit -- and we hope they do it this time without the drama and the pain and the damage they caused the country last July," Geithner said, speaking at the Peter G. Peterson Foundation's 2012 Fiscal Summit.

House Minority Whip Steny Hoyer, on Capitol Hill, also said the debt ceiling "shouldn't be a political issue."

However anyone who has followed this debate in the past knows that should the debt ceiling become an issue before the November elections, the rhetoric will reach an epic level.

Read more: Boehner tees up next round of debt-ceiling fight

Posted by Lou Dobbs Staff at 3:00 PM

Link to this entry

Email to a friend

Greece's Political and Financial Crisis Continues To Weigh on Stock Prices

May 15, 2012

Stocks on Wall Street give up early gains on news of massive withdrawals from Greek banks.

The Dow Jones Industrial Average fell 63 points, closing at a near four month low of 12632. The S&P 500 ended at a three month low, losing nearly 8 pts. on the day. The Nasdaq Composite rounding out losses, finishing down about 9 pts.

Greece's political and financial crisis in the background for much of the day, taking a backseat to better than expected readings on manufacturing activity in the Northeast and a strong rebound in homebuilder confidence. The New York Federal Reserve's regional manufacturing gauge surged to 17.09 in May from 6.56 in April, topping expectations of 8.5. And a separate report from the Labor Department showed prices at the consumer level were unchanged in the month of April, which was in line with estimates.

But that all changed after the Wall Street Journal reported Greek's withdrew a massive $898 million from local banks on Monday. The report citing transcripts of a conversation between the Greek president and government officials. President Karolos Papoulias quoted as saying, "that the strength of banks is very weak right now."

Those headlines leading to additional safe haven buying in the dollar, which today closed higher for a 12th straight session, the longest string on session gains in more than two-decades. That compounding expected news that negotiations in Greece to form a coalition government failed, and that a new round of elections would likely be held sometime in June.

That dollar strength exacted a toll on already weakening commodities prices. Gold and silver prices ending the session modestly lower, with losses picking up steam in electronic trading on news of what some are characterizing as a run on Greek banks.

Crude oil prices retreated ¢80 on the day, settling at a near five month low of just under $94 a barrel.

Posted by Lou Dobbs Staff at 2:00 PM

Link to this entry

Email to a friend

President Attempts To Divide Along Lines of Race & Gender

May 14, 2012

President Obama and his surrogates are waging a culture war, employing racial rhetoric and attempting to cast Mitt Romney as a vampire.
Democrats are starting to wage the culture wars on the presidential campaign trail -- wielding President Obama's endorsement of gay marriage and pointing to Republicans as mean spirited politicians looking to limit women's access to health care.

The President today spoke at the commencement ceremony at Barnard College, a woman's college in New York affiliated with Columbia University.
Obama used his appearance to urge the graduating class to not just get involved in the decisions that will influence their futures, but to demand a seat at the decision-making table.

"Of course, as young women, you're also going to grapple with some unique challenges, like whether you'll be able to earn equal pay for equal work; whether you'll be able to balance the demands of your job and your family; whether you'll be able to fully control decisions about your own health," said the president.

Two obvious plays from the president's re-election campaign.

The president not only managed to work in his campaign's newest slogan "Forward," but his recent evolution on gay marriage even found a place in his speech.

"No matter who you love or what God you worship, you can still pursue happiness -- I will support you every step of the way," Obama said.

Obama's schedule is will be capped by a pair of fundraisers in New York focused on gay and Latino donors -- one of which will be hosted by the LGBT Leadership Council and openly gay singer Ricky Martin.

The president's schedule reflects a robust push by the Obama campaign to trumpet, not downplay, the president's decision last week to support same-sex marriage -- a historic first for a sitting U.S. president.

The campaign last week released a web video heralding the announcement, while casting Romney as "backwards on equality."

Romney and the Republican National Committee, though, are sticking to the issues of the economy and spending. The Republican National Committee released a new web video Monday slamming Obama for his "broken promises" on deficits and debt.

Read more about recent campaign developments on FOXNews.com: Obama seeks leverage off gay-marriage endorsement, heads to more fundraisers

Posted by Lou Dobbs Staff at 6:00 PM

Link to this entry

Email to a friend

European Debt Crisis Pushes Dow to February Lows

May 14, 2012

Europe's debt crisis rattles U.S. investors, pushing the Dow and the S&P 500 to the lowest levels in more than three months.

The Dow Jones Industrial Average today dropped 125 points to 12695. The blue chip index now down in eight of the last nine trading sessions - and is off more than 580-pts or just about 4.5% since May 2, 2102. S&P 500 dipped 15 points, and the Nasdaq Composite dropped 31 points, barely holding onto the 2900 level.

Selling was broad-based on the day. The S&P 500 closed at its lowest level since February, while oil settled at its lowest value of 2012. Every one of the 10 S&P 500 sectors was to the downside.

Energy and financial shares suffered some of the steepest losses. JPMorgan Chase fell 3.17% and was the worst performing blue chip after it announced the retirement of Ina Drew, who has been at the firm for more than 30 years and heads the division responsible for the $2 billion trading loss.

Safe-haven triggered big gains in U.S. Treasury bonds. The yield on the 10-year fell 0.053-percentage point to 1.79%.

A fractured Greek parliament among the biggest contributors to investor anxiety here in the U.S. and across the Atlantic. Stocks in the United Kingdom, France and Germany fell 2% on the day. Greek political party leaders thus far unable to establish a coalition government, putting into jeopardy the county's membership in the European Union.
The worry among market players is that if a consensus can't be struck, the country's bailout package, and membership in the Euro-zone, will hang in the balance.

Also on the European front, Spain saw its yields rise at a short-term debt auction on Monday from a previous debt sale. The offering did meet strong demand, but the rising borrowing costs have increased fears that it will be the next country to be hit by the debt crisis.

Commodities took a hit across the board as well. Oil traded in New York tumbled $1.35, to settle at $94.78 a barrel. That's the lowest closing price for the front month crude contract since December of last year.

Posted by Lou Dobbs Staff at 4:00 PM

Link to this entry

Email to a friend

Obama's Support of Gay Marriage Could Prove An Issue in Swing States

May 11, 2012

President Obama on Wednesday formally announced his support for gay marriage. A position that has evolved since his initial run for high-office.

Some are characterizing his announcement as courageous and a calculated risk. Others are questioning his motives and timing as he heads off to a Hollywood fundraiser hosted by actor George Clooney.

Doug Schoen, a regular guest on Lou Dobbs Tonight, says that president's new position on gay marriage could cost him among swing-state voters.

To be sure, this announcement was a political move for the Obama 2012 reelection campaign which is now aggressively seeking to use his endorsement to mobilize a major grassroots get-out-the-vote initiative and energize huge swaths of the party's liberal and progressive base, as well as young people and independent voters, many of whom back gay marriage.

And with the Obama reelection campaign increasingly relying on donations form the gay community in its fundraising efforts, publicly declaring his support for gay marriage hours before he headed to Hollywood Thursday night for a fundraiser at the home of A-list actor George Clooney was a strategic and shrewdly timed move by Mr. Obama.

But Schoen also points out that president's news position, summoned to the forefront by VP Joe Biden's comments over the weekend, is problematic for the campaign when it comes to swing-state voters.

Put simply, the issue of gay marriage remains highly contentious in a number of swing states: a majority of voters in North Carolina, Ohio, Virginia, and Florida continue to be against same sex marriage.

The state-by-state data from polling conducted by Public Policy Polling show that a majority of voters in key swing-states like Virginia (53%-34%), Florida (53%-37%), North Carolina (61%-31%), Wisconsin (50%-30%) and Ohio (52%-32%) oppose the legalization of gay marriage.

And according to a recent Pew poll, one in three Southern swing voters are strongly opposed to gay marriage.

Read more of Schoen's article on FOXNews.com: Obama's gay marriage endorsement could cost him with crucial swing voters

Posted by Lou Dobbs Staff at 6:00 PM

Link to this entry

Email to a friend

The President Touts His Policies to Nevadans

May 11, 2012

Fresh off his $15 million Hollywood elite fundraiser at the Studio City home of George Clooney, the president today is making a campaign stop in Nevada.

The state has the nation's second highest foreclosure rate, and has the highest unemployment rate in the United States.

Obama won in Nevada in his 2008 presidential election. But the economy presents new challenges as well as an opportunity for his Republican rival, Mitt Romney.

"Whether or not he wins it again will depend on how enthusiastically labor works for him there, because they are such a critical part of getting out Hispanic vote, and the Hispanic turnout," said Anna Greenberg, a Democratic pollster told FOX News.

In order to rebuild that enthusiasm, Obama is expected hard to remind homeowners that since his policies were enacted refinancing in the state is up more than 200%. He's also expected to highlight the contrasts between his immigration policies.

The president is also expected to remind Nevadans that he's attempting to get a so-called "do-nothing" Congress to take action on his economic "to-do" list, which includes passing bills aimed at helping more homeowners, refinance their mortgages.

While in Albany earlier this week Obama said, "Congress needs to help the millions of Americans who have worked hard, made their mortgage payments on time but still have been unable to refinance their mortgages with these historically low rates. This would make a huge difference for the economy."

But surrogates of presumptive Republican challenger Mitt Romney are attempting to get voters to see beyond the spectacle of the White House entourage.

In a conference call prior to the president's visit, Rep. Mark Amodei said, "Nevada is the largest federally owned state in the nation. The man visiting today is essentially the land lord of Nevada."

Posted by Lou Dobbs Staff at 4:00 PM

Link to this entry

Email to a friend

Stocks Logs Weekly Losses As JP Morgan Chase Plummets

May 11, 2012

The Dow Jones Industrial Average fell 34.4 points. The S&P 500 finished down 4.6 points. Meanwhile the Nasdaq Composite managed to scratch out a fractional gain on the day.

All three major US stock indexes finishing with weekly losses. The Dow suffered the largest declines, dropping 1.7%. The S&P finished off 1.1%, while the Nasdaq Composite ended the week down 0.8%.

Today's mixed results not as bad as many had feared after the recently considered "best in breed" JP Morgan Chase shocked investors and the market with a $2 billion trading loss in its credit portfolio. The loss stemming from hedging the bank's risks, and is expected to cost the firm some $800 million in the second quarter. The unexpected loss tarnishes the reputation of the biggest U.S. bank, and its chief executive, Jamie Dimon.

JP Morgan weighed heavily on the financial sector and the Dow. The bank's stock tumbled more than 9%, costing the blue-chip average 28.6 points on its own. Anxiety over other bank's possibly running into similar losses pushed Bank of America's stock down 1.95%.

Market losses however minimized by better than expected news on consumer confidence. The Reuters and the University of Michigan index of consumer sentiment this month posting a surprise gain, rising to 77.8. That's the highest level on the index in more than four-years.

Adding to the good news, the Labor Department reported prices at the wholesale level dipped 0.2% in April. Excluding the more volatile food and energy components, prices were up 0.2%, which was in line with expectations.

Industrial output in China slowed down to the lowest level since March 2009 last month. That news fueled concern that the world's second-largest economy may be in for a so-called hard landing, which would entail a dramatic slowdown in the pace of expansion.

That news and continued anxiety over political turmoil in Greece caused investors to seek safety in the dollar and U.S. debt. The yield on the 10-year Treasury note finished at a two-month low, under 1.84%. The yield on the benchmark finished lower for an eighth straight week, marking the longest string of weekly declines in more than a decade.

Commodities were broadly lower. Crude oil prices ended down 98-cents, closing at the lowest level on the year, settling at $96.13

Posted by Lou Dobbs Staff at 4:00 PM

Link to this entry

Email to a friend