Fiscal Cliff Deal

Quote:
The House voted 257-167 to send the the bill brokered by Senate Minority Leader Mitch McConnell and Vice President Joe Biden that overwhelmingly passed the Senate in the early hours of New Year's Day to President Barack Obama. Despite conservative opposition, including 'no' votes from House Majority Leader Eric Cantor, Majority Whip Kevin McCarthy and 149 other Republicans, the measure easily cleared the House with the support of House Speaker John Boehner and the overwhelming majority of House Democrats.


I am personally disappointed with this outcome. I have seen Fiscal Cliff as the only way to meaningfully trim defense spending. Now it will unlikely to happen and I don't have to explain how we cannot afford to spend so much on defense.

Next - Debt limit increase negotiations and very likely default and another downgrade. This might (should, if markets were rational) increase cost of debt and would make reaching balanced budget much harder (more money spent just paying interest).

rant/ At the same time, I won't be shorting US bonds. In my mind we are clearly into Japan-like illogical financial twilight zone. Just another example where market fails to rationally respond to the situation. Tulips all the way down. /rant


Last edited by sini; 01/02/13 07:08 AM.
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