Money Minute: Washington Nears a Deal as Budget Battle Takes Toll on Jobs


A glimmer of light from Washington. That's just one of five money stories you'll need to know this Tuesday.

Leading senators are said to be this close to reaching a deal to temporarily ending the twin stalemates over the budget and debt ceiling. President Obama is likely to sign on if a deal is hammered out, but House Republicans could still block any plan from coming to a vote. And while the Senate plan would end the immediate threat to the economy, critics note that it simply kicks the issue down to road by just a few months, and we could be right back in the soup before the winter is over.

The Dow Jones industrial average (^DJI) gained 64 points Monday, its fourth straight gain. Markets turned higher on word that lawmakers were closing in on a deal.

Economy (In this May 29, 2013 photo, job seeker Anu Vatal of Chicago, speaks with Patrice Tosi of BluePay, seated, during a care
M. Spencer Green/AP
A report from Macroeconomic Advisers says the crisis-driven government has cost the U.S. economy 900,000 jobs. It says the partisan battles in Washington threaten our economic recovery.

Americans view of the economy depends on how much they earn, and the gap is getting bigger. A survey by Goldman Sachs (GS) finds households making more than $90,000 a year are much more optimistic than those earning $50,000 or less. The wealthier group is more likely to own stocks and own their homes, both of which have increased in value over the past few years.
But the so-called wealth effect hasn't trickled down to others, creating a lack of confidence that could hurt consumer spending as we head into the holiday shopping season.

Amtrak says its nationwide ridership hit an all-time high in its recently completed fiscal year. The railroad carried 31.6 million riders during the year. More than a third of them traveled along the busy Northeast corridor from Washington to Boston, despite the disruptions caused by Hurricane Sandy.

And the Wall Street Journal reports several major drug companies are developing new ways for the body's own immune system to attack cancer cells. Bristol-Myers (BMY), Merck (MRK), Roche and others stand to make billions if their new immunotherapy treatments live up to the results of clinical trials so far, extending the life of some cancer patients by several years.

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We need National Health Care via a Medicare expansion.

We need a new Stimulus that is ACTUALLY used as it was originally designed.

We need Full-Corporate funding of all technical schools and colleges.

We need to put High-Speed Rail into High Gear.

October 15 2013 at 4:49 PM Report abuse +2 rate up rate down Reply
1 reply to mac2jr's comment

You might wonder who is going to finance your pipe dreams.

October 16 2013 at 2:24 PM Report abuse rate up rate down Reply

90% of the tax refunds and tax breaks go to the International Corporations, and you don't see the Republicans willing to CUT there.

October 15 2013 at 4:46 PM Report abuse +2 rate up rate down Reply

90% of the Government waste is in the MIC, and NOT one Republican is willing to CUT there.

October 15 2013 at 4:45 PM Report abuse +2 rate up rate down Reply

Democrats win - Americans lose.

October 15 2013 at 4:33 PM Report abuse -2 rate up rate down Reply

Obama wants to make it worse than it really is how in sam hill did he he get reelected

October 15 2013 at 4:22 PM Report abuse -3 rate up rate down Reply

If a 10 day shutdown of the bloated bureaucracy can mess with the job market, just shows how screwed up we are...that is just a media cover for the failed Obama policies. They try everything to blame the party who wants to slow our financial train wreck and get themselves more money to buy more vote! So pathetic!!!!!

October 15 2013 at 4:10 PM Report abuse +2 rate up rate down Reply
1 reply to barbjalex's comment

The party that Created the Financial TRAIN WRECK is the Republican Party..

October 15 2013 at 4:37 PM Report abuse +3 rate up rate down Reply

this is a nonsense article. just liberal media covering for obama's a$$ in
his over-reaching effort to squash the republicans. disgusting --
and you say obama is doing all he can do for the economy?
obama is nothing more than a dirty democrat politician.

October 15 2013 at 4:02 PM Report abuse +2 rate up rate down Reply
1 reply to mike's comment

You want the 250 item list of what President Obama has accomplished to help the economy ? I will be happy to publish it here, it takes several pages...

October 15 2013 at 4:39 PM Report abuse rate up rate down Reply

if these 800,000 on furlough are "non-essential" then let's figure out a way to make them obsolete and stop wasting money on a bureaucracy

October 15 2013 at 3:39 PM Report abuse +1 rate up rate down Reply
1 reply to davidcpasq's comment

So you want to close down the embassies, the National Park Service, the airports, the Center for Disease Control, the Food and Drug Administration, the Environmental Protection Agency, etc., these are the people that make up 400,000 of the 800,000, the other 400,000 are Military suppliers. Take your pick, let's see who you tick off !

October 15 2013 at 4:41 PM Report abuse +2 rate up rate down Reply

there is this simple matter of debt. Look at it as for every trillion of it about 15 billion goes to pay the interest and that's at our low-low int. rate. and to the 17 trillion that already exists we're accum. at the present rate on inflow outflow 1.5 trillion every 2 years. to pay these debts the fed have been demonitizing your money. Almost 10% of our budget goes to servicing the debt and it keeps building

October 15 2013 at 3:26 PM Report abuse +1 rate up rate down Reply
1 reply to sandi's comment

And the solution is to invest in America and its physical and educational infrastructure so that we stop falling behind the rest of the world and once again become the world's leader, which is as it appears going to take getting rid of the Republican Party.

October 15 2013 at 3:34 PM Report abuse -3 rate up rate down Reply
2 replies to mac2jr's comment

You can invest all the money in the world to the educational system . You cannot repair stupid. And Mac2 has that kind of problem..

October 15 2013 at 4:19 PM Report abuse -2 rate up rate down

More spending for education? We are wasting money on people who cannot be educated or do not wish to be. You cant't fix stupid.

October 15 2013 at 4:21 PM Report abuse -1 rate up rate down

Tourism is the number one industry for many states, and it is number two or three for many more, and this 'Republican Hit' on the industry is not only nasty, but totally uncalled for and as a 'Plus' is increasing the deficit and removing billions in revenue and tax collections from the local, state, and federal governments.

October 15 2013 at 3:23 PM Report abuse -3 rate up rate down Reply