Short and sweet from the Chairman of the fermentation committee:
The Fiscal Cliff And Beyond – This morning markets are buoyed by signs of movement in the Fiscal Cliff negotiations.
Unfortunately, none of the give and take sounds like a grand design package. Rather, it looks like cobbling together a short-term band-aid solution.
Nonetheless, the market has been so self-terrorized with Cliff negatives that even band-aid solutions may bring a sigh of relief.
Meanwhile, the central banks of the world are poised to simultaneously embark on aggressive new rounds of quantitative easing. There will be lots of focus on Thursday's BOJ comments. This is a world even Keynes could not conceive.
Of course, Keynes never worked out of 1954 Stalingrad, or 2012 Washington, D.C.