In response to:

One Cheer for the Cliff Deal

twinspineve2 Wrote: Jan 04, 2013 6:39 PM
i wonder if the repubs wanted to win. the demos got us into this mess with careless spending and no budget...when it gets bad enough the dems will get kicked out of office and the repubs will come in as the good guys.

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.