The Dow Jones closed up 1.6% for the week, with the deal on Greece and daily progress noise on a deal between Republicans and Democrats on raising the debt ceiling. Any optimism on a deal lifted stocks, showing the general positive mood in the country that something would be done to avert disaster. Like Harry Potter, defeating the dark forces of doom is not something that happens quickly; it takes years and several sequels. It will be the same with our Great Recession of 2008, which is still lingering three years later. We also may be in sequel mode, if there isn’t a last second deal in the works.
Captain America wins the box office this week, with $65.8 million, shoving Harry into second place with a steep drop of 72% from last week’s “must see” opening for die hard fans. The Marvel Universe continues strong, with Thor and Captain America both posting big numbers for new franchise movies and providing strong lead-ins for next year’s Avengers which will unite Thor, Captain America, Iron Man and Nick Fury in a tag-team superhero battle against super-evil villains. Should be fun.
Markets will await news from Washington on a deal, but there are no superheroes there to save the day. Consensus is that the idiots will figure out something to avoid being seen as incompetent (and thus, vulnerable to be booted out of office). However, blaming the other guy is the dominant strategy and could doom us all to more uncertainty and continued drifting from a powerful lack of leadership. Captain America is total fiction, but we need a hero for sure.