Once again the market falls for the politicians' snake oil (as we explained before). Unconvinced? This is what none other than "Fiscal Cliff compromise is imminent" photo op participant Nancy Pelosi said moments later to the WSJ:
Ms. Pelosi said. "I was focusing on how we send a message of confidence to consumers, to the markets in the short run, too."
And there you have it from the horse's mouth: absolutely nothing of actual substance in today's presser which was completely hollow of anything remotely resembling an actual compromise, but merely the same type of Euro-propaganda we have grown to loath and despise for the past 3 years, where a flashing red headline was supposed to generate a short squeeze. It succeeded.
There is one open question: did Nancy Pelosi's multi-millionaire investor husband Paul Pelosi know ahead of time what the announcement would say, and did he buy any securities in hopes of a "short run" gain?