Political Buzz US Economy in Crisis August 10, 2011: Dow Again Plunges 520 Points

US ECONOMY IN CRISIS

THE HEADLINES….

Stocks plunge after another day of volatile trading: Stocks finished the day down sharply as sellers returned to the market in full force following Tuesday’s dramatic rebound.
The Dow Jones industrial average was down about 520 points, or 4.6 percent, putting the blue-chip index below the 11,000 level it had managed to break through during Tuesday’s rally. The Standard & Poor’s 500, a broader market measure, was down about 52 points, or 4.4 percent, while the Nasdaq, a more tech-heavy index, was down 101 points, or about 4 percent.

The plunge on Wall Street, which reached around 4 percent in late trading, drove home a powerful message to investors: That the rally of about 4.7 percent in the Standard & Poor’s 500 index and other indexes on Tuesday had no basis to last. — NYT, 8-9-11

  • Banks drag Wall Street lower on Europe debt: Fear returned to Wall Street on Wednesday, sending the S&P 500 to another 4 percent decline, triggered by worries that Europe’s debt crisis could engulf French banks and spill onto the U.S. financial sector.
    Trading was once again marked by sharp moves on heavy volume. For a fifth straight day, the Dow industrials fluctuated in a range of more than 400 points…. – Reuters, 8-10-11
  • Dow Closes Down 520 Points, Reverses Tuesday Gains: The rollercoaster stock market took another downward turn Wednesday, with the Dow closing down 520 points, wiping out Tuesday’s recovery from a 600-point dip on Monday…. – PBS Newshour, 8-10-11
  • Stocks Drop 4%, Dow Skids 500, Led by Banks: Stocks finished near session lows in choppy trading Wednesday, with the Dow and S&P wiping out all of the previous session’s gains led by financials, as investors continued to cautiously monitor developments in the European banks. … – CNBC.com, 8-10-11
  • Wall Street Loses Previous Day’s Gains: A major sell-off in the last minutes of today’s trading made the Dow Jones Industrial Average lose 520 points, making Wall Street lose the gains it earned yesterday. A few minutes before 4 p.m., the Dow fell about 150 points, making today’s total its ninth-largest loss in history. The S&P 500 fell 51 points and the technology-heavy Nasdaq also fell 101 points…. NY1, 8-10-11
  • Dow Declines 520 Points, Volatility Spikes: There was little to cheer in the market Wednesday, a day in which the Dow’s 4.6% decline negated Tuesday’s gains, gold prices surged and volatility spiked. The Dow Jones Industrial Average sank 519.83 points to 10719.94. … – Barron’s, 8-10-11
  • Wall Street Veterans Struggle To Comprehend Recent Market Moves: The stock market’s steep declines have not only produced jittery daily gyrations and heightened volatility, but they have also stunned some of Wall Street’s well-known veterans. … – WSJ, 8-10-11
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Political Buzz August 10, 2011: Republicans Leaders Mitch McConnell, John Boehner Name their Picks for the Congressional Super Committee “Joint Select Committee on Deficit Reduction” — Senate Majority Leader Harry Reid Named Three Democrats to the Committee on Tuesday

POLITICAL BUZZ

By Bonnie K. Goodman

Ms. Goodman is the Editor of History Musings. She has a BA in History & Art History & a Masters in Library and Information Studies from McGill University, and has done graduate work in history at Concordia University.

OBAMA PRESIDENCY & THE 112TH CONGRESS:

Clockwise, from top left: Jon Kyl, Rob Portman, Pat Toomey, Fred Upton, Jeb Hensarling and Dave Camp are shown in this composite. | AP Photos
Clockwise, from top left: Kyl, Portman, Toomey, Upton, Hensarling and Camp were selected by Republican leaders. | AP Photos

112TH CONGRESS

Congressional Republican leaders Speaker of the House John Boehner and Senate Minority Mitch McConnell name their Republican choices for the 12 person Congressional “Super Committee,” the Joint Select Committee on Deficit Reduction that will be in charge of determining the $1.5 Trillion in budget cuts over the next 10 years. Senator Majority Leader Harry Reid named three Democratic Senators to the committee on Tuesday. House Minority Leader Nancy Pelosi will be naming the final three Democratic House Representatives to the committee by Tuesday, August 16, 2011.

Super Committee Co-Chairs:
Jeb Hensarling (R-Texas)
Senator Patty Murray (D-Washington)

Speaker John Boehner House Choices:
Jeb Hensarling (Texas)
Dave Camp (Michigan)
Fred Upton (Michigan)

Republican Leader Sen. Mitch McConnell Senate Choices:
Jon Kyl (Arizona)
Rob Portman (Ohio)
Patrick J. Toomey (Pennsylvania)

Democratic Senate Majority Leader Harry Reid’s Choices:
Max Baucus (Montana)
John Kerry (Massachusetts)
Patty Murray (Washington)

“My main criteria for selecting members was to identify serious, constructive senators who are interested in achieving a result that helps to get our nation’s fiscal house in order. That means reforming entitlement programs that are the biggest drivers of our debt, and reforming the tax code in a way that makes us more competitive and leads to more American jobs. The goal is to achieve a result that convinces Americans and the world that we’re committed as a nation to prosperity for all our citizens. — Senate Minority Leader Mitch McConnell

“The Majority Leader and I are committed to a regular order process, as outlined in the law, so that all members and committees will have input as this Joint Committee does its work. And from the conversations I’ve had with the other leaders of both parties, I can tell you there’s a strong commitment to having open hearings and a public process.” — Speaker John Boehner

“The simple truth is that if our budget was law today, it’s unlikely anyone would be talking about the United States being downgraded today. S&P said in its own report Friday that entitlement reform is the key to long-term financial stability. We passed a budget through the House in April that includes entitlement reform, and cuts more than $6 trillion. The Democrat-controlled Senate and President Obama have prevented most of those reforms have happening, and that’s why we have a downgrade.” — Speaker John Boehner

“The selections to the super committee all have an eye toward politics and the 2012 election. All of the members selected are serious legislators, but also members who will have no problem protecting their party’s base … These selections do give the committee the ability to develop the savings required in the debt deal, but I still believe it is unlikely we get the grand bargain. — FBR Capital Markets policy analyst Ed Mills in a reference to presidential and congressional elections in November of next year.

  • Six Republicans Named to Deficit Panel: The top Republicans in the House and the Senate appointed six more lawmakers on Wednesday to the bipartisan committee that is supposed to recommend steps to reduce federal budget deficits by at least $1.5 trillion over 10 years…. The panel, the Joint Select Committee on Deficit Reduction, is supposed to come up with recommendations by Nov. 23…. – NYT, 8-10-11
  • Debt panel members prompt doubts: A conservative Texas Republican congressman has been chosen by House Speaker John Boehner to co-chair a powerful new committee tasked to find a bipartisan plan to slash the federal budget deficit by over $1 trillion…. – AP, 8-10-11
  • Six Republicans named to deficit super panel: Republicans named six members on Wednesday to a U.S. congressional deficit-reduction super committee that was set up to seek bipartisan agreement on taxes and government spending.
    The panel is known as the Joint Select Committee on Deficit Reduction and was established to find $1.5 trillion in additional budget savings over 10 years, but markets have been looking for signs that it may be able to do even more…. – Reuters, 8-10-11
  • Deficit panel will have GOP chairmen, freshmen: Republican leaders in Congress today chose a mix of party leaders, veteran committee chairmen and newcomers to serve on the special committee that will try to find another $1.5 trillion to cut from budget deficits…. – USA Today, 8-10-11
  • McConnell, Boehner Announce Super Committee Picks: Republican Congressional leaders announced Wednesday their selections for the powerful Joint Select Committee on Deficit Reduction charged with putting a plan forward to cut at least $1.5 trillion from the deficit, following Senate Majority Leader Harry Reid’s selection announcement Monday…. – PBS Newshour, 8-10-11
  • Republicans reveal picks for debt “super committee”: Republican leaders in the House and the Senate today announced their appointees to the 12-member, bipartisan congressional “super committee” charged with finding at least $1.2 trillion in budget savings by Thanksgiving…. – CBS News, 8-10-11
  • John Boehner and Mitch McConnell’s super committee picks: The top Republican congressional leaders have appointed six members to the deficit reduction “super committee,” naming a half dozen lawmakers with conservative policy credentials to make up the GOP half of the panel charged reducing the deficit by $1.5 trillion over the next decade…. – Politico, 8-10-11
  • Republican Super Congress Members: No Ryan, No Freshmen: Speaker of the House John Boehner and Senate Majority Leader Mitch McConnell have announced their selections of Republicans to staff the “Super Congress” mandated by the debt limit deal, and neither Budget Committee chairman Paul Ryan nor any House freshmen members were chosen…. – American Spectator, 8-10-11
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