Thursday, October 11, 2012

D minus 70

Disaster still looms.

"The U.S. is heading towards fiscal disaster and no one in Washington is doing anything about it.  Investors are putting too much faith in Congress and the White House to work out a deal, making the stock market a risky proposition.  They really believe honestly that no Congress could be this stupid, and by God, they can."
--http://www.cnbc.com/id/49375694/ 

But read this:  "By jumping off that fiscal cliff—more of a mogul, actually—the US would see the trajectory of its debt flatten out similarly. The deficit might drop to 1.2% of GDP by 2021, according to CBO estimates. Still miles away from a balanced budget, a total non-starter in our free-lunch QE culture. The mountain of debt would be much higher still. But it would be a start. On the other hand, if the fiscal cliff is not allowed to work its magic, the exponential growth of debt will simply continue to its bitter end."
--http://www.testosteronepit.com/home/2012/10/11/fear-mongering-and-hysteria-about-the-fiscal-cliff.html

So pick your poison.  Disaster now, or annihilation later.  I'm kind of rooting for the "fiscal cliff" to avoid worse problem in the future. 

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