In response to:

One Cheer for the Cliff Deal

Troglodite Wrote: Jan 04, 2013 9:58 PM
If some of us want to end the careers of excessively squishy Republicans, I am all for that and recommend that, in order to get the most bang for our buck, they donate to the Club for Growth all that spare change that is burning holes in their pockets. In the meantime, the Congress that we have now is the one that is going to have to face the issue of raising the debt limit again in a few weeks. Rather than revile our Congresscritters, at this point we are likely to accomplish more by reminding them that they will have another chance to cut spending soon and that, to make it easier for them, Obama has thrown away his biggest club by agreeing to make most of the Bush rates permanent.

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.