The Sugar High Will End & Time For Margin Calls!! - Stock Market Is At Risk Of Losing 2,000 Points Within The Next Few Weeks

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.”

…

Boehner Would Accept New Taxes Under ‘Right Conditions’…. ‘Shoring up entitlements and reforming the tax code — closing special interest loopholes and deductions’

U.S. House Speaker John Boehner said Republicans would be willing to accept new tax revenue to reduce the nation’s budget deficit if it’s accompanied by a tax overhaul and changes to entitlement programs.

Speaking in Washington a day after President Barack Obama’s re-election, Boehner of Ohio said all sides are “closer than many think” to being able to revise the tax code.

“Shoring up entitlements and reforming the tax code — closing special interest loopholes and deductions, and moving to a fairer, simpler system — will bring jobs home and result in a stronger, healthier economy,” the speaker said, according to a prepared text.

Doc Eifrig: An important tax loophole is about to slam shut

Read more at http://investmentwatchblog.com/the-sugar-high-will-end-and-time-for-margin-calls-stock-market-is-at-risk-of-losing-2000-points-within-the-next-few-weeks/#eprsxmOj3uvfLz3M.99