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Archive for the Republican Category

Bernanke Meets With Republican Senators -

On Wednesday, Federal Reserve Chairman Ben Bernanke met with Republican Senators to discuss the European Union sovereign debt crisis.  According to GOP Senators, Bernanke indicated that the European debt crisis could significantly impact the American economy.  The Euro fell below $1.30 in afternoon trading.

To read a related CNN Money article, please click here:

http://money.cnn.com/2011/12/14/news/economy/bernanke_europe_senate_gop/index.htm

Jim Sutliff

Republicans Target Capital Gains Tax -

A few Republican Presidential candidates are supporting the elimination of long term capital gains.  The reduction in the capital gains rate could spark investments and increase job growth.  Currently, there are five Republican Presidential candidates that support the capital gains reduction and that number is likely to grow.  Democrats are supporting measures to increase the current rate on capital gains.

To read a related Bloomberg article, please click here:

http://www.bloomberg.com/news/2011-09-01/republican-investment-tax-cutters-top-bush-while-defying-buffett.html

Jim Sutliff

Dollar Hits Record Lows -

 The U.S. Dollar continued to decline against all major currencies and hit record lows in trading.  The uncertainty surrounding debt negotiations between Republicans and Democrats are leading traders to sell the Dollar.  In afternoon trading the U.S. Dollar/ Euro exchange went above $1.45.  In addition, the stock market lost some ground.

To read a related Bloomberg article, please click here:

http://www.bloomberg.com/news/2011-07-26/asia-stocks-gain-u-s-futures-oil-fall-before-obama-speech-on-debt-limit.html

James Sutliff

Still No Debt Deal -

The weekend is coming to a close and there is no agreement on raising the debt ceiling.  Republican and Democratic negotiators have discussed short and long term debt ceiling increases.  Republicans prefer a short term increase that would require Obama to request more funding in early 2012.  Financial markets have started to react with the Dollar falling against the Euro, gold rising, and stock futures falling more than one percent.    

To read a related Reuters article, please click here:

http://www.reuters.com/article/2011/07/24/us-usa-debt-idUSTRE7646S620110724

Jim Sutliff

Debt Plan Sends Dow Higher -

A possible agreement to raise the debt ceiling sent the Dow higher in aftenoon trading.  The Dow Jones gained over 200 points after Obama gave his approval for a debt agreement between  Republican and Democratic Senators.  The news also sent Gold prices lower by over $15 an ounce.

To read a related CNN Money article, please click here:

http://money.cnn.com/2011/07/19/markets/markets_newyork/index.htm?iid=Popular

Jim Sutliff

Debt Ceiling Talks Continue -

Debt ceiling talks between Republican and Democratic leaders continued on Saturday.  There has not been an agreement on terms to raise the $14.3 trillion debt ceiling.  The debt ceiling must be raised by August 2nd or the U.S. would fall into default and financial markets may react negatively.  

To read a related Reuters article, please click here:

http://www.reuters.com/article/2011/07/16/us-usa-debt-idUSTRE7646S620110716

James Sutliff

Republicans May Agree To Raise Debt Ceiling -

Republicans may agree to a short term deal to raise the debt ceiling.  According to the U.S. Treasury Department, the debt ceiling has to be raised by August 2nd to meet current obligations.  The current debt ceiling is $14.3 Trillion and negotiations will continue through the July 4th weekend.  Democrats have called for tax increases to close the budget deficit and Republicans are attempting to cut spending.

To read a related Bloomberg article, please click here:

http://www.bloomberg.com/news/2011-07-03/republicans-may-accept-mini-debt-ceiling-deal-cornyn-says.html

James Sutliff

Municipal Bond Tax Exempt Proposals -

Municipal bonds are facing proposals that would eliminate their tax exempt status.  Republican Paul Ryan submitted a budget proposal that was aimed at lowering the deficit but also would end municpal bond tax exemption.  It is not likely that municipal bonds will lose their tax exempt status because of the effect it would have on the issuers. 

To read a related Bloomberg article, please click here:

http://www.bloomberg.com/news/2011-06-02/municipal-bonds-likely-to-remain-tax-exempt-bny-mellon-says.html

Jim Sutliff

Congress Passes Tax Cuts -

Congress passed the bill to extend the Bush era tax cuts for another two years.  The bill also includes estate tax provisions that increase exemptions and address gift tax and generation skipping tax issues.  Today, the House voted 277-148 in support of the bill and on December 15th the Senate voted 81-19.

To read a related Bloomberg article, please click here

http://www.bloomberg.com/news/2010-12-17/house-votes-to-debate-obama-s-858-billion-tax-cut-deal-with-republicans.html

Jim Sutliff

Republican Stock Market?

The sweeping victories by the Republicans may serve to keep the bulls running in the market.  The House is now solidly controlled by the Republicans and Democratic control of the Senate has been watered down a great deal.  Democrats in the Senate are likely to show caution regarding issues such as higher income and estate taxes.  The tax rate on carried interest also may be off limits to changes by the Democrats.  There are several Senate seats held by Democrats that are vulnerable in 2012 so this Congress should be much more conservative.

To read a related Bloomberg article, please click here:

http://www.bloomberg.com/news/2010-11-03/republican-victory-in-u-s-midterm-elections-may-keep-bull-market-alive.html

James Sutliff

Stock Market Rises -

The Dow Jones Industrial Average is up 74 points on the day with investors focused on the election and the Federal Reserve.  The expectation that Republicans will make gains in both the House and Senate are part of the reason for the market rise.  Another factor is the expected second round of quantitaive easing by the Federal Reserve.

To read a related Wall Street Journal article, please click here:

http://online.wsj.com/article/SB10001424052748704462704575589892276293622.html?mod=WSJ_hp_LEFTWhatsNewsCollection

Jim Sutliff

Market Waits For Election -

The stock market slowed down at the end of the week as many investors wait for the election results.  Tuesday could bring a split Congress or Republican control of both houses.  Currently, Republicans are expected to win more than the 39 seats that are required for control of the House.  The Senate is expected to be very close with Democrats holding 48 to 52 seats.  A 50-50 Senate would have Vice President Joseph Biden being the tie breaker.

To read a related Bloomberg article, please click here:

http://www.bloomberg.com/news/2010-10-30/most-u-s-stocks-retreat-as-investors-await-fed-gongressional-elections.html

James Sutliff

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