Financial topics

[Reality Check]

...
Obama campaign is over.

This is the four years plus where the Americans get exactly what they voted for.

4,500 Billion in additional Government Spending just passed the House of Representatives at Obama's request.

600 Billion in new taxes to partially pay for that has just passed the House of Representative with more than 79 Republican votes at Obama's request.

Fiscal Cliff has been delayed 58 days until March 1st when Congress will have to either vote to cancel the previous 2,400 Billion in deficit reduction the Congress passed and Obama signed before the election, or allow the country to fall off the fiscal cliff and into recession.

As John says, they will lie about it, both Republicans and Democrats and claim they fixed something today, but they just delayed it for 58 days.

58 days from now the Fiscal Cliff occurs all over again.

[OLD1953]

Given that what's been done is to set up a constant squabble about the budget that will be ongoing every other month for the rest of this year, we'll know what was actually budgeted and spent about the end of October, in other words after the end of the fiscal year. Which is going to keep markets in turmoil and businesses and people will refuse to either borrow or spend beyond the minimums due to total uncertainty. Moreover, many programs that could be dispensed with aren't even on the table, because the votes of three or four congressmen depend on those exact programs, and these budget bills aren't passing by much larger margins in most cases.

Apparently it will just get worse until we either go to war or one side or the other totally wins, by which I mean reliable people with a clear and not RINO or DINO majority in both houses. IOW a majority that behaves and does not revolt against the party leaders at every minor disagreement. That's going to be a while, if we have to wait for the latter. Especially given that means a majority of at least 62 or 63 in the Senate, unless there are rules changes. The write in "filibuster" is possibly the most anti constitutional and worst idea ever established in that body. One could write quotes from Madison, Washington, Jefferson et al for hours that warned of the dangers of requiring super majorities for common business.

[Reality Check]

squabble about the budget

There has not been a squabble about a budget.

There has not even been a budget.

The noise and the confusion was about a tax increase that was so small as to be irrelevant.

What really happened in the middle of the night was that Reid and Obama dropped a $4,500 Billion ( $4.5 Trillion ) spending bill on the Republican's desk and said sign it without reading it.

The Republicans then promptly voted it into law without reading it.

The taxes were just a side show.

And the budget, that was suppose to take months to draft and have been completed before last October never happened.

[Reality Check]

So what was in the $4.5 Trillion Spending Bill ?

All the things that Obama and Reid wanted but would never have been agreed to by the American People if they had seen the light of day before passing.

What was not in the spending bill ? Everything the United States must have, and the Congress would never refuse to vote for.

What is coming next?

More spending and canceling $2.4 Trillion in previous spending cuts, except those cuts to the Military that Obama wants.

[Reality Check]

...

For the Record:

Deliberative, Representative Government in action.

$4,500 Billion ( $4.5 Trillion ) U.S. government spending bill carefully studied and vetted before being voted on:

http://cnsnews.com/news/article/senator ... -voting-it

[aedens]

http://www.mskousen.com/1999/09/the-per ... economics/

535 opinions on herding cats as the ability to service debt is ignored it appears.
The white house "experts" think we are to stupid to own our very lives.
They simply allow us to breath on there terms only. Taxpayers have forged there own chains
of now there own posterity.

[aedens]

Blocker wave we used to call flooding. If we had morons on the IRC we would flood the channel to get them to drop on the leg 13 servors then.
http://www.zerohedge.com/news/2013-01-0 ... ryone-else
Nan busted them point blank.

[Higgenbotham]

What would things look like if the Fed wasn't engaged in Monetary Malpractice?

- Interest rates would be higher,
- People would save more and spend less,
- Government would spend within its means,
- People would spend within their means,
- There would be decreased consumption,
- People would invest more,
- Stock values would track company value and efficiency more closely,
- Government would shrink,
- America would produce and manufacture more,
- Trade deficits would shrink,

The economy would recover and become healthy.

http://www.safehaven.com/article/28258/ ... al-markets

[Higgenbotham]

There was another mini panic in the futures this afternoon after the cash close and I exited 75% shorts and went 5% long. I have to bet some kind of "deal" or promise of a "deal" gets cobbled together over the weekend or early next week and the market will rally for about 3 days on that. If that happens I will probably reverse to 100% short at that time. There is no reason for me to disbelieve there can't be some carry over towards your target in this bizarre carnival that has no modern historical context.

The S&P futures are up about 35 points from the panic low on Friday. Not sure this "deal" is worth any more than that, so I went back to 75% short.

Whoops, the S&P futures closed the week up 75 points from the panic low on Friday. I'm planning to move to 100% short and maybe more next week.

[John]

And we'd immediately have a stock market crash that would be
blamed on Ben Bernanke, and he would go down in history as
the man who caused the greatest financial crisis in history.