Milk prices may soar to $8 a gallon

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Morning Money Memo…

Partisan gridlock in Congress can lead to dramatically greater milk prices in 2012. It is the latest sign the deep divide between Dems and Republicans is getting an immediate effect on customers and also the economy. Milk prices could a minimum of double in The month of january if there's no agreement on farm cost supports. The present fight within the $80 billion-a-year food stamp program is really a large thing about this. The farm bill money includes food stamps in addition to farm subsidies. With no deal, customers in The month of january could pay $8 for gallon of milk. People of the home and Senate are going to begin discussions now around the five-year farm bill. Each side are far apart around the sensitive problem of how much cash to chop from food stamps.

The federal government shutdown ended two days ago and also the budget showdown has ended for the time being, however the effect on the economy might be felt for several weeks. Consumer sales for September to become launched tomorrow were most likely flat. Consumer confidence fell within the days prior to the shutdown and it is still underneath the average with this year. A brand new survey of economists for USA Today states over fifty percent are less positive about growth prospects compared to what they were three several weeks ago.

Sales for the most part small- and medium-sized business continue to be growing but "that rate of growth continues to be decline in half in the last 12 several weeks," states John Hamilton, chairman of Sageworks, the financial company that follows is a result of independently possessed firms across the nation. "You couple the loss of growth with the truth that we are 4 years into a fiscal expansion and also you start thumping facing the mean average duration of expansion."

Despite worries concerning the consumer economy, situations are still whistling along on Wall Street. The stock exchange had another strong week with new record levels for that S&P 500. The Nasdaq may be the greatest it has been in 13 years. The Dow rose 61 points on Friday. The quarterly earnings months are about 50 % way through and many companies to date have beaten analysts' estimations. Apple and Facebook are some of the most carefully viewed reviews now. Apple today may announce that for any third quarter consecutively earnings were under these were the prior year. The Government Reserve will report September's industrial production amounts today. And also the National Association of Real estate agents will release the pending home sales index for September.

Michigan's Governor Ron Snyder is placed to testify today inside a trial about whether Detroit can deal with its finances in personal bankruptcy court. The conclusion on the city's qualifications might be days away. A vital problem is whether or not the town held "good-belief" talks with creditors prior to the filing. Unions and pension funds refuse. Detroit owes vast amounts of dollars and it is the biggest city to launch personal bankruptcy.

Richard Davies Business Correspondent Caramba Today Radio abcnews.com Twitter: daviesnow