Driving the Day 11/22/2011
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Nov 22, 2011
- The deficit supercommittee has officially folded. In a statement released yesterday shortly after markets closed, co-chairs Jeb Hensarling and Patty Murray announced that they had “come to the conclusion today that it will not be possible to make any bipartisan agreement available to the public before the committee’s deadline.”
- Congress’ emergency backup budget-cutting plan now takes over but the roughly $1.2 trillion in cuts doesn’t kick in until January 2013 and that allows plenty of time for lawmakers to try to rework them.
- President Obama is having none of it. He said, “Already some in Congress are trying to undo these automatic spending cuts. My message to them is simple: No. I will veto any effort to get rid of those automatic spending cuts … They’ve still got a year to figure it out.....Nothing prevents them from coming up with an agreement in the days ahead.”
- Meanwhile, ratings agencies Moody’s and Standard & Poor’s said there were no immediate plans to downgrade the U.S. credit rating. But Fitch, which currently has the most positive rating of the three on U.S. debt, said it could cut the outlook on its “triple-A” rating, with a downgrade an outside possibility.
- Data compiled by Bloomberg shows that MF Global’s employees joined a wave of firings that has washed away more than 200,000 jobs in the global financial-services industry this year, eclipsing 174,000 in 2009. Bloomberg reports that “faced with higher capital requirements, the failure of exotic financial products, and diminished proprietary trading, the industry is undergoing ... ‘a paradigm shift.’”