Still In Trouble

Even with the debt limit deal passed by the Senate and signed by President Obama, the stock markets are now looking at that dismal Q2 GDP revision showing the recovery is over, and that this deal will in the short term make things worse.  The Dow dropped under 12k and things are still fugly, the S&P 500 is now in the red for the year.

Stocks slid, erasing the 2011 gain for the Standard & Poor’s 500 Index, while Treasury yields fell to the lowest levels since November amid concern the economic recovery is in jeopardy. Gold rallied.

The S&P 500 fell for a seventh straight day, losing as much as 2.4 percent to 1,255.87 at 3:52 p.m. in New York, leaving it down almost 0.1 percent for the year. 

The Dow closed down 265 points at 11,866 while gold rallied on South Korea saying it's looking to beef up its gold reserves.

The bottom line is the debt ceiling mess took us off the economy, which is now back into the "Hey isn't this a recession?" mode.  Wall Street has noticed however and with Congress gone through Labor Day, no help is coming anytime soon.

Unless the Fed steps in with QE3...