They might just let those tax cuts expire,then work out a compromise to modify them.No doubt there is money to be made on this(shorts before then long calls afterward) but it's gambling for sure and if you don't get the timing right;you're toast.Instead of buying hotdogs with food stamps you would be eating caviar and filet mignon.
Therightstuffer: Will food stamps let you buy boose and cigaretts? Because these two items are not food. Neither I drink nor I smoke or ever went on food stamps, that is why I do not know. I will be really surprised if one can buy such things on food stamps. Fiscal Cliff is definitely a cliff hanger and it shall happen and most of us will be in food stamps line, no doubt about it.
You have to sell the food stamps to get cash so you can buy the things you are not supposed to buy. Now, if one had to present photo ID with food stamps (I think the stamps are now in the form of a card) this type of fraud would go away. If a recipient doesn't have their food stamps how do they eat? The answer is food banks. $8,000 buys a medicaid insurance policy - deductables and premiums courtesy of those who still pay taxes. With middle class incomes not increasing in 13 years what are the odds welfare recipients have experienced the same? Don't worry relief is in sight for the middle class. By helping borrowers refi several times at unnatural interest rates and coming up with programs to reduce refi fees or absorb the risk of loans that exceed 100% of value everything will be OK. Looks like subsidized housing to me. Lest we forget the high percentage of people who defaulted on underwater mortgages that have jobs and likely now live in a rental with a payment that is higher than a current mortgage payment. 1099 them on the gain - loss they created for taxpayers? Nope. That's not the Obama thing to do or is it? Maybe that's why he wants higher cap gains taxes.