Not Budging from the Bottom of the Cliff

If we needed any further proof that markets are irrational, we see it today in the stock market’s rise of 308 points.  Yes, the deal reached on the fiscal cliff was better than nothing, but only slightly.  It postponed much more than it solved.

The markets can climb if they want to, but as for me, I’m going to sit here at the bottom of the cliff.  I see no point in trekking back up only to tumble again in a couple of months.

Once Tim Geithner can no longer find spare change in Treasury’s couch cushions, we’ll hit the debt ceiling in a couple of months.  I laughed last night when the President said he won’t negotiate on that.   He’s going to hold his breath till the world’s economy turns blue?

The sequester that got “delayed” in this deal for 60 days will come up again at the same time as the debt ceiling.

Finally, the latest “continuing resolution” we limp along with in lieu of a real budget expires at the end of March.  So another fight.

I expect the Tea Party will make the coming battles over the debt ceiling, sequester, and budget make the one we just concluded look like, well, like a tea party.

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