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No Cliff Calamity: That’s What Stocks Are Correctly Predicting

Harrison Bergeron Wrote: Dec 12, 2012 2:00 PM
Whew, what a relief! For some reason, I thought it might be a problem to borrow 40% of the federal budget just to keep the wheels on. Silly me, I thought it was a bad thing when Bernacke declared "Quantitative Easing Infinity". Heck, I had this crazy notion that re-electing a closet communist to the Presidency might actually be bad for Capitalism! And then when Boehner and the beltway bozos fell for that stupid fiscal cliff deal, I thought, wow, "game over"! What a fool I've been! Wall Street says "no problem"! When has the stock market ever steered us wrong? Thanks, Larry! I feel so much better now!
Despite all the media hullabaloo about the fiscal cliff and a potential recession if none of the Bush tax cuts are extended, stock markets have behaved calmly throughout this whole period. In fact, as of this writing today, the Dow is up 100 points.
I’m going to guess that stocks, in their wisdom, are correctly sniffing that there will be no calamitous falling off the cliff. By that I mean there will be no $500 billion tax hike, which would be an economy killer.
Instead, after speaking with prominent Republican House and Senate members, I have come to believe the following:...