"During the 2008 presidential campaign, Obama promised time after time "a net spending cut" to make government smaller in order to cut the deficit. But the huge increase in government spending and debt, and the resulting higher future taxes will make America a poorer country. The Congressional...

Previous literature has produced weak evidence to support the hypothesis that real economic news affects stock returns. This is, in part, attributed to the difficulty of measuring how investors interpret macroeconomic announcements in different economic environments. In this paper, we choose a...