As the holiday season approaches, they are dancing on Wall Street with the Dow, S&P and NASDQ either at or approaching all-time highs. And while his popularity is rapidly joining his Health Care Reform Act near the bottom of the political trash heap, the tin-eared President Obama continues to glide on the dance floor of the White House celebrating the Democrats clampdown on filibusters and an ill-advised agreement on nukes in Iran.
But as this year races to an end, there looms a huge set of problems, all interconnected, that could not only end any vestige of political happiness in the White House, but also put an end to the exuberance on Wall Street.
The scenario goes something like this: It begins with a continued unraveling of the Affordable Care Act. With even the likes of CBS News now reporting that millions of Americans will continue to face cancellation of their health insurance, even those who receive those benefits through their employers, the likelihood that Obamacare will somehow turn the corner towards popularity is unlikely.
Looming in the not-so-distant future is another round of dealing with the budget and the debt ceiling. Most experts doubt that even the boldest of Republicans will attempt to shut the government down for a second time. They escaped what looked likely to be an endless avalanche of elite media criticism for their October shutdown only because of the complete flop of the rollout of Obamacare. Its failure was so massive that it actually diverted the media's attention away from their sport of choice -- beating up Republicans.
And the disaster that is the Affordable Care Act is likely to embolden conservative members of Congress to stage their next fight over the issue that, in reality, has been paramount in their minds for years, that of the debt ceiling. That leads us to the other dance partner in our holiday season scenario: Wall Street.
After learning that the Federal Reserve had no immediate plans to stop shoveling printed dollars to purchase our own Treasury bonds, and seeing both the shut down and debt ceiling crisis averted, equities shot up to all-time highs. And that made sense since the low-interest rates that result from the Fed's feeding the beast has left investors with nowhere else to gain a reasonable return for their money.
But the partying and dancing in the East Room of the White House and at posh establishments haunted by the elite of the financial world this holiday season could be followed by a 2014 political and economic hangover of massive proportion.