Looks like the stupid committee failed, automatic cuts to happen

Discussion in 'Wall St. News' started by KINGOFSHORTS, Nov 20, 2011.

  1. http://www.cnbc.com/id/45375696

    Looks like the whole thing was nothing but wheels spinning. At least the 1.3 trillion cuts will happen anyways.

    They should have not bothered and just announced the cuts from day one.

    Will be interesting how this will impact the holiday trading week.

    Since its pretty obvious Obama will be relected (GOP candidates a total joke, not one viable candidate except Huntsman)

    We can expect 4 more years of gridlock.

    This will mean another good 4 years of selling options again.
  2. JamesL


    I believe the cuts don't come until 2013
  3. maxpi


    California went into the automatic cuts for the year before the first half [quarter?] was even up. It could be worse!! The Federal scene could be as bad as California's! Cheer up! Unless it's actually worse, I don't think anyone really knows, the accounting is sort of fuzzy...
  4. 377OHMS


    It is interesting because neither side really wants a compromise.

    The Dems like the huge automatic cuts to Defense.

    The Republicans like the modifications/cuts to entitlements.

    They both seem to prefer the automatic cuts to being personally identified with massive cuts.

    It was designed to fail.
  5. I think that was the whole purpose. Cuts by default and no one has to stand up and have anything on the record.
  6. There needs to be some kind of punishment for these corrupt politicians failing to act. When will people get sick enough of this garbage and throw these criminals into prison.
  7. The Democrats haven't been selling the tax increase properly. The latest from Dizard over at the FT on the euro crisis:

    Well, if we're going to get a bunch of rich Europeans moving in to take advantage of the relative stability of the US, we should tax them in such a way as to make them feel right at home. Maybe some Republicans might jump over the line if it was marketed this way?
  8. ammo


  9. What spending cuts? There are no spending cuts in the plan - there are no reductions, just slow downs in rate of growth.
  10. Div_Arb


    Also, I speculate the Bush tax cuts will miraculously expire without a name attached to them, either. Although the middle class will see their taxes rise, the top tax rates would converge back to Clinton era levels. Wasn't cap gains 28% and dividends taxes as ordinary income? Then, Obama could work with the new congress to pass a tax cut for the middle and lower class, excluding the upper income earners and everyone's a hero.

    That's just my guess and I'm probably wrong! (a little lesson i learned from Mr. Market)
    #10     Nov 20, 2011