What makes me say that?
Obama has some partial agreement for his debt limit deal. And the Asian stock exchanges are celebrating. I am presuming that once London and New York open the same scenes of happiness will be shown by share price movement towards the heavens.
So why is this not good news? I suppose it’s good news for companies holding stocks in other companies and the big investors. The little guys have mostly had to leave the stock markets one would imagine after the serious ups and downs would have wiped most of the value from their shareportfolios. Especially the dramatic fall during the 2008 recession would have left the man in the street much poorer.
The debt limit deal does the following. No increases in tax. Just cuts to government spending that will involve thousands of programmes most of them dealing with services to the people. 1.8 trillion US dollars or more in deficit cuts will surely affect the poor and middle class the most.
After all the wealthy don’t need social services. And besides that they have gotten away unscathed in terms of paying more tax.
Of course to fix the situation in the immediate term the debt ceiling will be lifted by nearly one trillion US dollars. To pay it off, services will be cut.
And that’s what is so horrid. Many jobs will be lost, benefits to marginalised people such as disabled and disadvantaged folk will surely be cut, public parks closed down or run on shoestring budgets, museums left behind and the list will be a long one.
But the stock exchanges throughout the world see this as a good thing and are celebrating with upwardly moving share prices. They see it as creating more wealth for the investors while screwing over the little guy. Just doesn’t make sense to me.