Sounds like a buying opportunity.Any guesses on where the DOW will end up if the Super Committee fails to come up with a substantive deficit reduction plan? My guess is about 9500
We have the best government money can buy.I have no idea what the Dow will do, beyond go up and down...
As for the committee, not expecting much if anything to emerge. I think the participants were chosen for their partisanship, and given the false dichotomy that is our politics these days, it seems unlikely we'll get much more than stalemate...
I'd like to be wrong, though.
.....
Now, the question is what will happen if we fail to cut $4 TRILLION from the budget over the next 10 years.... and IMO it needs to be $9 trillion..
I'm hoping that they realize the political fallout that would accompany not striking a deal and that their cushy jobs would be in peril. If they fail to strike a deal and the stock market and economy go in the tank as a result there will be an even madder electorate that will (hopefully) crucify any incumbent at the polls in November of 2012.
I have not looked, but I would bet money that the people on the committe do not have to worry about getting re-elected...
You don't want to put your 'weak' players in this game....
I also think that calculus is that Obama and the dems will be blamed more than the repubs, so they can pick up seats and do more of what they want in a couple of years...
Another possibility is that after these mandatory cuts go into effect, there will be some votes to restore some of them...
I agree. I suspect that investors have discounted any likelihood of an agreement yet this quarter. However, there is enough other silliness in the market that anything goes.Congress will either extend the deadline or wipe out the "automatic" cuts.
Congress will either extend the deadline or wipe out the "automatic" cuts.
As for the committee, not expecting much if anything to emerge. I think the participants were chosen for their partisanship, and given the false dichotomy that is our politics these days, it seems unlikely we'll get much more than stalemate...
Before the super committee was formed, I was hoping they would appoint moderates from both sides. Silly meMy thoughts exactly.
And both parties will blame the other for the outcome.I don't think we'll get a stalemate or a solution, but we will get something that no one can understand, everyone will see differently, and could best be used to fertilize most pastures.
Right. Blame each other for producing fertilizer but take credit for growing the produce...And both parties will blame the other for the outcome.
Before the super committee was formed, I was hoping they would appoint moderates from both sides. Silly me
Just so it's not a naked link,
It is probably better that they get hung up on basic issues. I'd hate to think they could agree on the basic stuff but then trip over minor details.Texas Rep. Jeb Hensarling, the panel's Republican co-chair, told CNN's "State of the Union" that the only solution possible might be a two-step process in which the bipartisan committee sets a figure for increased tax revenue that congressional committees would then implement through legislation.
Just so it's not a naked link.
The situation is often phrased like this: "If they fail to agree, automatic across-the-board cuts that no one wants will be enacted."
Would these automatic cuts really be that bad?