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The Sequester from a business prespective

wall street do not enter

With the Dow Jones hitting all-time highs, I thought that it would be instructive to see what Wall Street thought about the sequester.

A few thoughts from Goldman Sachs:

In 2011, Congress passed and the President signed the Budget Control Act, which raised the debt limit by $2.1 trillion and cut $2.1 trillion from projected spending over the following ten years. Caps on discretionary spending levels were estimated to reduce spending by $900bn compared with baseline projections that assumed spending would growth with inflation. The remainder of the savings was to be achieved by the congressional “super committee.” To motivate the super committee, and to ensure deficit reduction even if it failed, the legislation established $1.2 trillion in automatic cuts through 2021 by means of sequestration if the super committee could not agree on at least that much in deficit reduction. The super committee failed to agree on a deficit reduction package, leaving sequestration to take effect….

The cuts are not that large in the context of the $3.5 trillion federal budget, but sequestration will nevertheless cause real disruptions because the law to implement the cuts is very prescriptive and because they must be phased in relatively quickly once triggered …


By |2013-03-09T12:33:22-04:00March 6th, 2013|Economy, Obama administration|Comments Off on The Sequester from a business prespective

Hurricane Sandy

Heed the warnings. Be safe!!! Hurricane Sandy isn’t going to play nice.

From NYT:

Hurricane Sandy churned relentlessly through the Atlantic Ocean on Monday on the way to carving what forecasters agreed would be a devastating path on land that is expected to paralyze life for millions of people in more than a half-dozen states, with extensive evacuations, once-in-a-generation flooding, widespread power failures and mass transit disruptions.

The huge storm, which picked up speed over the water on Monday morning, was producing sustained winds of 90 miles per hour by 11 a.m., up from 75 m.p.h. on Sunday night. The center of Hurricane Sandy made its expected turn toward the New Jersey coast early on Monday. The National Hurricane Center said the center of the storm was now moving north-northwest at 28 m.p.h. At 2 p.m., the center said that the center of the storm was about 110 miles from Atlantic City, where the boardwalk had been damaged, and 175 miles from New York City.

Crane Collapsing in NY City because of Hurricane Sandy’s high winds.

Atlantic City is in trouble:

First responders in Atlantic County and Atlantic City have been ordered to return to shelter and cease operations, per the Atlantic County Office of Emergency Management.

The water level at Steel Pier has risen sharply, nearly two feet in the past 90 minutes, according to the National Data Buoy Center.
President Obama declared New Jersey a disaster area, hours before Hurricane Sandy is to make landfall in South Jersey, opening up Federal Emergency Management Agency aid to help reimburse the relief effort.

By |2012-10-29T22:08:01-04:00October 29th, 2012|Environment|Comments Off on Hurricane Sandy
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