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Just need to make it clear for the mouth breathers: the President did not change his position. The GOP in Congress has changed its position, and because of that the markets are no longer tanking. The GOP was the cause of the problem. Always has been. Sophistry in the pursuit of selfishness is no virtue.
I agree that GOP is the problem, but I'm not so sure that they changed their position. Boehner sounded more reasonable yesterday, but only his tone was different ... he said the same things re policy. Repubs want a tax rate cut combined with reduction of deductions/credits. If the Prez can increase revenues that way, they will consider it. Isn't that what they said before? And this whole problem is over an additional 4% above $250,000 of net income. Who is putting their own extravagant welfare above the good of the country?
8 out of the 10 wealthiest counties in the country voted a majority for Obama. The wealthy really don't fight the premise of a 4% income tax increase in general. Many would be relieved to get away with just 4%. The bottom line is if the GOP can deliver the same amount of revenue in their approach as just letting the tax break expire. And that is just on the revenue side. I haven't seen general agreement on the spending cut side of the equation either.
The Democrats are in the catbird seat. They can get exactly what they want by letting some of the issues involved in the fiscal cliff simply fly over the edge. There are some issues both sides fully agree must be addressed and those will be addressed with a "patch" approach. I fully expect the GOP, and especially the Tea party, to submit tax code revisions that would significantly lack the increased revenue of the tax break expiration. I expect the Democrats to present spending cuts that don't align with GOP expectations. Time is going to be a huge factor because as both submit plans the CBO has to evaluate every one of them. This issue isn't going to get solved over a beer at the country club.
On top of that, as Boehner mentioned, we are facing another debt ceiling showdown. And just to make things more interesting you have the credit rating agencies hovering overhead waiting to see how we handle the whole ball of wax. They have us in a negative bias as it is and if Moodys adds to the S&P downgrade, THAT will be big news as it will force recalcualtion of interest on our debt payments.
And that is the central problem. A very small number of people with a lot of money have convinced a near plurality of the population to support their profligate lifestyles and self-serving political ends. If they do succeed in stonewalling progress again, it may be time to take more drastic measures than balloting at them.
That is ridiculous. The cliff can be avoided if either party changed its position and the same thing would have happened. Is that too complex to comprehend? How you guys draw these partisan conclusions that you do are beyond belief. It's as if your brain is wired to automatically make these associations even if they don't exist in reality. Sometimes I feel like I am watching a comedy where what people say is meant to be funny but then I in reality they are made in earnest.
And besides, the market has not rebound. The market is still expecting 4th quarter earnings to be dismal.
I highly recommend that you bet on your convictions and go long the market. You can make tons of money while I will lose money. Go for it and see where it gets you.