Ron Paul is expected to announce the formation of a Presidential Exploratory Committee. Paul ran for President in 2008 and made a strong showing in some Republican primary contests. Paul has a strong fundraising base to call on during the campaign and is expected to take part in the Republican primary debate in South Carolina on May 5th.
To read a related Bloomberg article, please click here:
Jim Sutliff
Dodd-Frank financial regulations impact many areas of finance including credit ratings. Implications of the Dodd-Frank regulations and proposals by the SEC are discussed in a recent article by Reuters.
To read the Reuters article, please click here:
http://www.reuters.com/finance/deals/regulatory
James Sutliff
The National Republican Senatorial Committee and Democratic Senate Campaign Committee (DSCC) have posted their first quarter numbers. Although the Republicans and Democrats are close in totals, the Republican Senate Committee has the advantage. The National Republican Senatorial Committee (NRSC) raised $11.2 million in the first quarter which was their highest total for an off-year quarter since the Bipartisan Campaign Reform Act in 2002. Also, Republicans are only defending 10 seats in 2012 and the Democrats have 23 up for re-election.
To read a related Roll Call article, please click here:
http://www.rollcall.com/news/DSCC-NRSC-First-Quarter-Fundraising-205053-1.html?pos=opolh
Jim Sutliff
Standard & Poor’s cut the outlook for U.S. debt from stable to negative. This is the first time in history that the S & P has cut the outlook for U.S. debt. The stock market reacted by pulling back almost 200 points in afternoon trading. Fitch Ratings still has the outlook for U.S. debt as stable.
To read a related Wall Street Journal article, please click here:
James Sutliff
Treasury Secretary Timothy Geithner addressed the need for major currency floatation. In a statement to the International Monetary Fund (IMF) steering committee, Geithner stated the need for major economies to allow their currencies to adjust to market conditions. The Chinese Yuan is one of the major currencies that need to become more market driven.
To read a related Bloomberg article, please click here:
Jim Sutliff
Political pressure to cut the deficit has led Republicans and Democrats to propose spending cuts. The cuts could have an effect on the steps taken by the Federal Reserve. The Fed is more likely to keep rates at or near the current low rate due to lower spending. The weak housing market is another factor working against potential rate hikes.
To read a related CNN Money article, please click here:
http://money.cnn.com/2011/04/14/news/economy/thebuzz/index.htm
James Sutliff
Obama brought the budget battle to the national media with a speech this afternoon. Obama promised to cut the deficit by $4 trillion over the next 12 years. The Obama budget plans to use spending cuts and tax increases to achieve the deficit cuts. The Obama plan is expected to meet resistance from Democrats and Republicans.
To read a related Bloomberg article, please click here:
Jim Sutliff
Republican National Committee fundraising for March topped $7 million which leaves the RNC with $3.2 million on hand. The Republican National Committee also announced that they hired Angela Meyers as the new finance director. Meyers held the same position with the Republican Governors Association.
To read a related Roll Call article, please click here:
James Sutliff
Republicans and Democrats reached a deal in the final hours to prevent a government shutdown. The deal cut a record $38.5 billion of spending from the budget for the second half of the year. A short term spending bill was also approved which cut $2 billion in spending and will keep the government funded until next friday. The Senate will finalize details on the larger spending bill during the next week.
To read a related Wall Street Journal article, please click here:
To read a related Roll Call article, please click here:
http://www.rollcall.com/news/deal_reached-204786-1.html?pos=hln
Jim Sutliff
CNN Money has an article on investor reactions to a possible government shutdown. The possibility of a government shutdown hasn’t had a major effect on trading activity. Wall Street is being influenced by rising crude oil prices, geopolitical tensions, and upcoming corporate earnings reports.
To read the CNN Money article, please click here:
http://money.cnn.com/2011/04/08/markets/thebuzz/
James Sutliff
The deadline for a government shutdown is approaching and the Washington Wire has an article on the effects of a shutdown. Washington Wire lists several Federal agencies and the possible consequences for each agency if a spending bill is not approved. The budget battle is becoming a 2012 campaign issue and there is a possibility of a brief shutdown. The Washington Wire is a blog on the Wall Street Journal that has provides political analysis.
To read the Washington Wire article, please click here:
http://blogs.wsj.com/washwire/2011/04/07/government-shutdown-what-to-expect/
Jim Sutliff
The Democrats have rejected a Republican budget proposal that would remove $33 billion in spending. Democrats have also refused to accept another Republican proposal that would include $12 billion in spending cuts but would extend the talks for another week. There are still four days left to negotiate before a government shutdown.
To read a related Reuters article, please click here:
http://www.reuters.com/article/2011/04/05/usa-budget-idUSN0511239920110405
James Sutliff
Republican George LeMieux is expected to declare his candidacy for the Florida Senate seat held by Democrat Bill Nelson. LeMieux was appointed by Governor Crist in 2009 to fill the remainder of the term for Republican Mel Martinez. LeMieux will face a primary from Republican Mike Haridopolos and possibly Adam Hasner.
To read a related Roll Call article, please click here:
http://www.rollcall.com/news/-204524-1.html
Jim Sutliff
Republican Presidential candidate Tim Pawlenty is starting to visit key states like Ohio. The former Governor of Minnesota must improve his name recognition with Republican primary voters. Pawlenty is targeting midwestern states that are more likely to support his candidacy for the White House. Pawlenty may face a challenge for regional support from Michele Bachmann.
To read a related Reuters article, please click here:
http://www.reuters.com/article/2011/03/31/us-usa-campaign-pawlenty-idUSTRE72U0GM20110331
Jim Sutliff
The millionaire tax is a hot button tax issue in several states. The results from an increased tax rate for high earners are questioned by many analysts. Supporters of the millionaire tax argue that it increases revenue and effects a very small percentage of taxpayers. Opponents of the tax are quick to point out the volatility of high incomes and that the taxpayers can simply move out of the state. There will certainly be more coverage of the millionaire tax in the coming months as state legislatures battle over the budget.
To read a related Wall Street Journal article, please click here:
http://online.wsj.com/article/SB10001424052748704517404576223012169093834.html
James Sutliff
