21 Dec 2001 ‘Twas the Night Before Christmas and All Through the Senate
Posted at 15:13h in The Friday BriefDid you really expect the U.S. Senate to come together at the last minute to craft a stimulus bill in time for Christmas? The last target date for such an economic lifesaver was Thanksgiving. They are further apart now than they were before Thanksgiving. Senate Majority Leader Tom Daschle “Dr. No,” said the Senate wouldn’t take up the stimulus bill passed by the House early Thursday, or any other stimulus bill this year. He left open the possibility that talks will resume when Congress returns in late January. Investors took their anger to the markets yesterday as the Dow and S&P fell almost 1%. The battered NASDAQ fell 3.25% on the failure because of its heavy dependence on an economic recovery. Bondholders are paying attention to the bill because passage would lead to more government borrowing, while defeat would cap the supply of Treasury debt making bonds more expensive and rates lower.