In response to:

One Cheer for the Cliff Deal

LarryFromMo Wrote: Jan 04, 2013 11:35 AM
So Larry, what you're basically saying is that we're screwed for at least the next two, maybe four years. All we can hope for is that the country doesn't completely fall apart before then. I've lost my optimism. My contention was that this last election was a referendum on whether or not the American people are as stupid as the Democrats think they are. When I saw exit polls showing that 53% of voters blamed Bush for the economy 4 years into Obama's presidency, the question was answered.

One cheer out of a potential three is all anyone can logically give the fiscal-cliff deal. On the day after the bargain was clinched, the stock market gave a 300-point cheer. So be it.

In the short run, extending tax cuts up to $450,000 probably saved us from a recession. If all the tax cuts had expired, we’d have a $500 billion tax hike, plus marginal rate increases, and that would have sunk the economy. So I’m going to bet that the big stock rally was a sign of relief that the final deal wasn’t worse.