THE SUGAR HIGH WILL END AND TIME FOR MARGIN CALLS!! Stock Market Is At Risk Of Losing 2,000 Points Within The Next Few Weeks
November 7th, 2012
Former house majority leader Gephardt warns of a possible 2,000-point drop in market within the next few weeks with bad news coming out from congress
There is some risk that the public could hear some “histrionics” from Democrats and Republicans playing to their bases as Congress works on spending cuts and tax reform, all of which could severely unsettle the markets, the former House majority leader said Wednesday.
“If it looks like that is happening you could have a couple really bad days on Wall Street,” said Dick Gephardt, the top Democrat in the upper chamber between 1989 and 1995 at an event hosted by National Journal magazine. “You could have the markets drop by 1,000 or 2,000 points.” (The event was titled “The Day After: The 2012 Election Debrief.”)
He added that there was a risk that, in the next few weeks, the public could hear some Democrats saying they won’t agree to cut domestic programs while some Republicans insisting that the U.S. should go off the cliff, cut lots of programs and ”cut up the credit card.” All, this could unsettle the markets, he said.
However, he added that it will be really difficult to get lawmakers to work together in the short time after an election and Dec. 31.
“It is hard to get the effort you need from 535 people [members of the House and Senate] to come up with some big agreement,” Gephardt said. “People are either angry, elated or exhausted.”