No, you're not reading tomorrow's news today. But I do think President Obama will get his way with Congress and will get a slimmed down version of the draconian spending cuts prescribed under the so-called Fiscal Cliff (Obama Urges Congress to Act to Stave Off Cuts). Why?
With the trickle of good news -- increased housing starts, lower unemployment, healthy auto sales -- showing signs of sustained momentum, stocks have understandably gone up. The S&P 500 is up 3.4% year-to-date, and it's only February 5.
Congressmen and senators are getting rich, not just because of their substantial trusts and other "blind" investments, but because many of the companies that support them are actually prospering as the economy picks up steam. That makes those companies happy. And happy American businesses return the favor to their representatives.
The strategy to overthrow Obama by obstruction and pig-headed stand-offs has run its course, now that Mr. Obama has been elected president for another term. Most Republicans have sensibly decided it's time to help juice the markets and make some quick gains for themselves. And, at the very least, they have decided not to do anything that will hurt stocks.
So they will not take the nation over the Cliff. They will go along with the president and keep this bull run going.
And that, folks, is how government works.
With the trickle of good news -- increased housing starts, lower unemployment, healthy auto sales -- showing signs of sustained momentum, stocks have understandably gone up. The S&P 500 is up 3.4% year-to-date, and it's only February 5.
Congressmen and senators are getting rich, not just because of their substantial trusts and other "blind" investments, but because many of the companies that support them are actually prospering as the economy picks up steam. That makes those companies happy. And happy American businesses return the favor to their representatives.
So they will not take the nation over the Cliff. They will go along with the president and keep this bull run going.
And that, folks, is how government works.
