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Fiscal Cliff Theater Off, Reality Sneaking Back On

Tyler Durden's picture





 

Just as we predicted, the Republicans effort to vote on 'Plan B' and throw the blame back to Obama's Democrats for a failed Fiscal Cliff resolution has halted discussions (which no matter how it is spun is not a positive!!!)...

  • *WHITE HOUSE SAYS TALKS HALTED ON BOEHNER'S 'PLAN B': POLITICO
  • *WHITE HOUSE SAYS 'PLAN B' MAKES DEAL LESS LIKELY: POLITICO

Of course, the market does not care... why would it?

 


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Wed, 12/19/2012 - 12:27 | Link to Comment punxsutawney phil
punxsutawney phil's picture

time to go to plan C

Wed, 12/19/2012 - 12:32 | Link to Comment knukles
knukles's picture

Just go over the cliff already.
Nothin' like a head on a stick to focus the mind.

Wed, 12/19/2012 - 12:35 | Link to Comment francis_sawyer
francis_sawyer's picture

Wait until they toss "gun control legislation" into the Fiscal Cliff debate... I guess they're waiting to see of the world ends on Friday before somebody bothers with that one...

Wed, 12/19/2012 - 12:37 | Link to Comment knukles
knukles's picture

Oh yeah, bring some clarity and rational thought to the debate.

LOL
Jesus.... why not?
Let's really fuck the whole point of the thing up.
After all, we've not had a budget for what, 5 years?  Can't do any harm...

Wed, 12/19/2012 - 13:09 | Link to Comment Chief KnocAHoma
Chief KnocAHoma's picture

This just in from our White House mole who taped a recent conversation between JonBonJove Boner, Nancy "Sweet Lips" Pelosi, and Obama.

Sweet Lips (While looking in a mirror) - Can you tell I had botox Tuesday? It was fully covered by our Congressional Health Care plan. Oh how I wish the little people could have a plan like ours.

They all look at each other and burst into laughter.

JonBonJove Boner - That's a good one toots. Our plan even covers my spray tan. The peasants wouldn't know what to do with a good tan.

Obama - Yeah... and they get enough sun working jobs in those silly red states. And botox... why do they need to look good. It's not like they are on TV like me. By the way... did you see my last speech? How did I look? Good? 

Sweet Lips - You look marvelous darling. Care for some caviar?

A courier arrives with a box marked US Credit Rating.

Obama signs for the package.

Obama - It must be a present from an addoring pleab.

JonBonJove Boner - (Grabs Obama's arm just before he rips open the box.) What is that ticking sound?

 

Wed, 12/19/2012 - 13:39 | Link to Comment TruthInSunshine
TruthInSunshine's picture

The ultimate deal will "slash" government spending by 900 billion a year while "cutting" the rate of growth of entitlements by 3% year, resulting in a still growing debt...

It's all fun and games until one realizes the debt can't be repaid without knowingly crashing the economy (although the economy will crash at any rate, and that's the part that is the salt in the wound).

Oh well, we're all turning Japanese & Krugman.

Wed, 12/19/2012 - 13:49 | Link to Comment Chuck Walla
Chuck Walla's picture

Knukles, you just get better every day!

"Nothin' like a head on a stick to focus the mind."

FORWARD SOVIET HEAD HUNTERS!

Wed, 12/19/2012 - 12:35 | Link to Comment Lohn Jocke
Lohn Jocke's picture

I POOPED TODAY!

Wed, 12/19/2012 - 12:38 | Link to Comment francis_sawyer
francis_sawyer's picture

Congratulations!... Was it a Democrat or a Republican?

Wed, 12/19/2012 - 13:47 | Link to Comment Lohn Jocke
Lohn Jocke's picture

It was a populist so...both?

If I was feeling punny it would have been a poopulist, but aren't they all?

Wed, 12/19/2012 - 12:28 | Link to Comment fonzannoon
fonzannoon's picture

Plan C = Jump.

Wed, 12/19/2012 - 12:38 | Link to Comment flattrader
flattrader's picture

We're over the cliff. We are approaching the splat.

These morons are simply trying to install a ledge here and there on the way down.

It will get sorted out at the bottom.

Let's get to it.

Wed, 12/19/2012 - 12:47 | Link to Comment SRVDisciple
SRVDisciple's picture

C'mon Mayans!

Wed, 12/19/2012 - 12:29 | Link to Comment buzzsaw99
buzzsaw99's picture

will this affect drone production?

Wed, 12/19/2012 - 12:38 | Link to Comment knukles
knukles's picture

That's secret.

Wed, 12/19/2012 - 12:41 | Link to Comment Spastica Rex
Spastica Rex's picture

Maybe so, but no, it won't.

Wed, 12/19/2012 - 14:33 | Link to Comment redpill
redpill's picture

Innocent children dying in Connecticut = national tragedy

Innocent children dying in Pakistan via US military drone strikes = "unfortunate"

 

No one should ever for a second believe these politicians actually give a shit.

Wed, 12/19/2012 - 12:29 | Link to Comment tooriskytoinvest
tooriskytoinvest's picture

The Fiscal Cliff Is A Diversion: We’re Going To Be In A New Recession, Washington Lost Total Control On Budget Since 2002, And The Derivatives Tsunami and the Dollar Bubble Are The Real Threats To Our Economy!!

http://investmentwatchblog.com/the-fiscal-cliff-is-a-diversion-were-going-to-be-in-a-new-recession-washington-lost-total-control-on-budget-since-2002-and-the-derivatives-tsunami-and-the-dollar-bubble-are-the-real-threat/

 

 

 

 

Wed, 12/19/2012 - 12:34 | Link to Comment Vashta Nerada
Vashta Nerada's picture

The new recession started in Q3, we're just waiting for anyone with the courage to report it.

Wed, 12/19/2012 - 12:42 | Link to Comment Spastica Rex
Spastica Rex's picture

But if it was reported, wouldn't that scare people into postpoing their latest new Escalade purchase at no down, no interest, and no payments until March, 2017?

Wed, 12/19/2012 - 12:47 | Link to Comment Vashta Nerada
Vashta Nerada's picture

True, the last bastion of the Keynesian Brigade is entrenched in editorial boardrooms across America, pining for a mixed economy of 60% government spending and 40% consumer goodies.

Wed, 12/19/2012 - 12:49 | Link to Comment tooriskytoinvest
tooriskytoinvest's picture

2008 market crash happened 8 months after recession started in 2007. I believe we entered in recession in May-June. So market is about to reflect the weakness in the Q1 2013.

we'll see.

Wed, 12/19/2012 - 13:08 | Link to Comment flattrader
flattrader's picture

ECRI is rarely wrong.  I think it is on schedule as well.

Wed, 12/19/2012 - 12:31 | Link to Comment Ham-bone
Ham-bone's picture

On this news S&P collapses 1 pt...fear through the heart of the market...although copper seems to disagree with all the happy talk?

Wed, 12/19/2012 - 12:30 | Link to Comment deejo
deejo's picture

Please vote for this post if you too would like to live in another galaxy.

Wed, 12/19/2012 - 12:39 | Link to Comment Ham-bone
Ham-bone's picture

sorta depends...what kind of "another galaxy" do you have in mind?

Wed, 12/19/2012 - 12:43 | Link to Comment Bobportlandor
Bobportlandor's picture

No this Galaxy is fine, MOF Nasa will come out soon and say they found out Mars had life until conservatives migrated to earth due to higher taxes.

Wed, 12/19/2012 - 12:29 | Link to Comment ShortTheUS
ShortTheUS's picture

Millions of algos suddenly cried out in terror and were suddenly silenced!

Wed, 12/19/2012 - 12:42 | Link to Comment viahj
viahj's picture

OT: is today's router outages above normal?  several sites I frequent are not responding.

http://www.internettrafficreport.com/namerica.htm

Wed, 12/19/2012 - 12:31 | Link to Comment francis_sawyer
francis_sawyer's picture

A 'Super Duper Deluxe Dream Team Committee' [spearheaded by a Tsar ~ who is on hiatus from GS] ought to be able to work things out...

Wed, 12/19/2012 - 12:31 | Link to Comment EscapeKey
EscapeKey's picture

There is no such thing as "bad news", it is merely "misunderstood news".

Wed, 12/19/2012 - 12:34 | Link to Comment knukles
knukles's picture

I'm having trouble figuring out if it's marbles in politicians mouths makes it so difficult to undersand or some form of mental imbalances/deficiencies.

Wed, 12/19/2012 - 12:38 | Link to Comment Uncle Remus
Uncle Remus's picture

Yes

Wed, 12/19/2012 - 16:12 | Link to Comment Disenchanted
Disenchanted's picture

both BUT not marbles, it's bankster bratwursts...

Wed, 12/19/2012 - 12:50 | Link to Comment GeorgeHayduke
GeorgeHayduke's picture

"misunderstood news"

Or "poorly spun news" as spin and image are the only things that matter anymore in this fantasy land that America has become.

Wed, 12/19/2012 - 12:32 | Link to Comment Vashta Nerada
Vashta Nerada's picture

I really want the republicans to hold the vote and then go home.  This ridiculous kabuki theatre of offering deal after deal to the thug regime is tiresome.  The house is in charge of the purse; they can produce the final offer, and leave it to the democrats to either take it or go off the cliff.  Either of those turnouts look better than any other idea I have heard.

Wed, 12/19/2012 - 13:06 | Link to Comment GeorgeHayduke
GeorgeHayduke's picture

The only reason the Rethugs are putting on this show is because the president is a Demoncrat. If the president were a Republican they would spend away, but only on their pet programs and projects, just like they did from 2000 - 2006 with Bush the Lesser as Prez. It's all theater designed to make it look like they give a shit about the average peon. Either way, the owners win as both parties work for them.

Wed, 12/19/2012 - 13:12 | Link to Comment Vashta Nerada
Vashta Nerada's picture

You have a point, though I think there are true policy differences between the two parties, as well as financial priorities. 

The bottom line is that we haven't had a federal budget in four years, and we are now in our fifth 11th hour negotiating session since 2008 and all of them involved accounting tricks; if congress was a private corporation, the BOD would be facing jail time.

Wed, 12/19/2012 - 13:21 | Link to Comment CrashisOptimistic
CrashisOptimistic's picture

You only have half a point. 

With total majority from 2009 to 2011, and pre Kennedy death about 6 months of filibuster proof majority, the Dems could have increased taxes all they wanted.

They didn't.

Wed, 12/19/2012 - 14:35 | Link to Comment GeorgeHayduke
GeorgeHayduke's picture

That is my point. Both parties are the same. From 2000 - 2006 the Rethugs could have shown the world their wonderful fiscal policies that they boast so much about. Yet by 2008 the shit hit the fan. (Don't forget 911 happened under their watch too.)

Same goes for the Dems, as you mentioned. Raising taxes aside, they could have banned guns, hung Marx posters in the Capitol and all of the other fear mongering BS conservatives accuse them of wanting to do. Yet here we are with a mushy, middle of the road attempt at driving the country along the same old path that no longer works, except for the usual thing that always works of the rich getting richer and the poor getting poorer.

Wed, 12/19/2012 - 12:32 | Link to Comment surf0766
surf0766's picture

Chained CPI. Did we not learn our lessons from the Boskin commission?

Wed, 12/19/2012 - 12:35 | Link to Comment I Am Not a Copp...
I Am Not a Copper Top's picture

They have to pass it so we can find out what's in it!

Wed, 12/19/2012 - 12:35 | Link to Comment HD
HD's picture

Everyone is bullish. Everyone.  Where are the bears? The shorts? Beaten, bloody while the bulls now consider a 5% correction a black swan event.

It all has to end well because you know, why wouldn't it?

 

Wed, 12/19/2012 - 12:56 | Link to Comment Quinvarius
Quinvarius's picture

Do you have any concept at all of how much money they are throwing into the financial system or how much leverage gets applied to it once it is in there?  The full effect of QE1 has not even been felt yet.  You need to stop thinking about the next 5 minutes or what is on TV.  Stop trying to outsmart the market.  Goldman tried it with stocks last month and got drop kicked.  Now they are trying it with gold.  They will get a new ahole for their efforts.

All that matters is easy money and cheap credit.

Wed, 12/19/2012 - 13:35 | Link to Comment HD
HD's picture

The endless printing is no longer stimulative - it is simply a replacement for real growth, wealth and investment. Ben does not expect his 85 billion a month to rocket the S&P to 2000 - he is trapped monetizing trillions in public and private debt just to prevent an all out collapse.

Japan has been printing for 20 years and their stock and housing market never recovered.  Expect the same in the US.

Wed, 12/19/2012 - 12:44 | Link to Comment LookingForTruth
LookingForTruth's picture

So, the issue around the fiscal cliff, is that Dems and Reps need to negotiate a deal to raise taxes and cut spending in order to avoid an automatic tax hike and spending cuts.  Not understanding the logic here. 

Wed, 12/19/2012 - 12:49 | Link to Comment Vashta Nerada
Vashta Nerada's picture

Ox, butcher's knife: some assembly required.

Wed, 12/19/2012 - 12:50 | Link to Comment CrashisOptimistic
CrashisOptimistic's picture

That's because financial reporters are fucking idiots.

THERE IS NO "RESOLUTION" TO THE FISCAL CLIFF.  The entire debate is about whether we have a 4% drag on GDP or a 2% drag on GDP.  In both cases, we'll likely see recession.

The market doesn't react to this because there is no market.  There are only HFT algorithms, which largely do not weight earnings much at all.

Wed, 12/19/2012 - 12:45 | Link to Comment Boilermaker
Boilermaker's picture

OMFG, MARKET ABOUT TO CRASH!!!  MARKET ABOUT TO CRASH!!! MARKET ABOUT TO CRASH!!!

THIS IS BOLD!!!

Wed, 12/19/2012 - 12:52 | Link to Comment Ham-bone
Ham-bone's picture

Ummm, where is this "market" that is about to crash?  A market sounds interesting...

Wed, 12/19/2012 - 12:46 | Link to Comment Jeepers Creepers
Jeepers Creepers's picture

The "fiscal cliff" is like a terminal cancer patient worrying about a zit on their face.

That being said, keeping tax rates the same for everyone under a million dollars seems to be a good place politically.  If we go "off" the tax cliff, it's Obama that clearly wanted to levy a big tax increase on the average American.

Wed, 12/19/2012 - 12:48 | Link to Comment CrashisOptimistic
CrashisOptimistic's picture

There is no bullish or bearish.

How you guys can read articles about HFT, see the statistics that they are 80% of trading and then talk about bulls and bears and sentiment makes no sense to me.

There is no market.  You can't be short or long.  It's all just a crap shoot.  Charts were supposed to describe human emotion.  Computers don't have that.

Stop trading.  Period.

Wed, 12/19/2012 - 12:51 | Link to Comment Boilermaker
Boilermaker's picture

<virtual cigar>

Wed, 12/19/2012 - 12:57 | Link to Comment marcusfenix
marcusfenix's picture

congress and the white house hard at work...

here it is in a nutshell.

plan A is pretty much scrubbed at this point so there is really no need to explain what it was, plan B is most likely going to suffer the same fate as plan A so there is really no need to elaborate on it's contents either, now plan C is in the early stages of negotiation on it's fundamental basic structure, but since plan B is still in the process of being rejected and remains a viable option plan C will not be solidified until sometime later on, the contents of plan C will not be divulged due to the fact that it is only meant to be a stopgap measure resulting from the failure of plans A and B, plan D which is the permanent solution is not yet even on the agenda for these negotiations so therefor can not be discussed at this time as it has as of yet no content or structure, but we remain confident that plan D is the ticket and look forward to posting it in it's entirety for public review eventually maybe someday unless it's posting poses a threat to national security.

regards,

.GOV

"bringing even more transparency and clarity to your federal government"      

Wed, 12/19/2012 - 12:59 | Link to Comment Everybodys All ...
Everybodys All American's picture

We have a fiscal situation because Obama has never had to live under a budget. Congress has never been able to pass a budget in three years and now going on four. The last budget Obama submitted to the House and Senate got zero votes for it. Zero.

Anyone who thinks Obama will be suddenly become fiscally responsible is delusional.

Wed, 12/19/2012 - 13:06 | Link to Comment rubearish10
rubearish10's picture

Perhaps, if the "Hopium Well" is deemed to be dry, TSHTF! This also means BTFD will be retired.

Wed, 12/19/2012 - 13:08 | Link to Comment Vashta Nerada
Vashta Nerada's picture

I regret that I have but one up arrow to give for this post. 

Wed, 12/19/2012 - 13:14 | Link to Comment rubearish10
rubearish10's picture

So, everyone may just run for the exit trade at the same time and everything reverses. Because if anyone thinks this is the "asset allocation" trade (sell bonds and buy stocks etc etc) they are gravely mistaken.As for the Euro, well simply it's the alternative currency to the USD and why's that, hey? From one piece of shit to the other piece of shit but it's still SHIT!

Wed, 12/19/2012 - 13:25 | Link to Comment Cycle
Cycle's picture

Posturing and aligning is futile.  The US Treasury has reached its Minsky moment and the military Keynesian stimulus will be shrinking rapidly no matter what the outcome of the talks.  The results should be amusing.

Wed, 12/19/2012 - 13:27 | Link to Comment Hubbs
Hubbs's picture

Sure, Obama  has to go over fiscal cliff, because he can't keep the lid on the fact that the economy has already deteriorated  much longer.

 

Now he can blame the economic decline on the fiscal cliff, not the fact that he has been driving full speed ahead towards it.

Wed, 12/19/2012 - 13:42 | Link to Comment yogibear
yogibear's picture

Someone gonna yell "FIRE" soon in the packed movie theater?

LOL, oh my.

Wed, 12/19/2012 - 14:30 | Link to Comment Joe moneybags
Joe moneybags's picture

Just the opposite.  The proprietor will announce free popcorn with a double feature.

Wed, 12/19/2012 - 14:04 | Link to Comment PUD
Wed, 12/19/2012 - 14:20 | Link to Comment zebrasquid
zebrasquid's picture

A real leader would not go on tv and air all the ins and outs of his feelings, why he thinks this and why this should all make ssense to other feeling people...blah, blah, blaaach!

Obama is nothing but a male Oprah.  Grow some balls, dude.  

 

Wed, 12/19/2012 - 14:27 | Link to Comment devo
devo's picture

This feels a lot like the Nasdaq bubble.

Wed, 12/19/2012 - 14:28 | Link to Comment Joe moneybags
Joe moneybags's picture

Boner will capitulate by the end of the week.  98% of americans will keep their taxes low, their government goodies up.  Nothing to see here.

Wed, 12/19/2012 - 15:39 | Link to Comment alfbell
alfbell's picture

The debt ceiling has been raised over 100 times. What a demonstration of fiscal incompetence and corruption. The debt ceiling was 1T in 1980. We're hitting it again and now it is over 16T. Why not just make the ceiling 100T next time assholes. It's obvious where we are going.

Thu, 12/20/2012 - 09:35 | Link to Comment Herkimer Jerkimer
Herkimer Jerkimer's picture

Ignore this. Jus' trying to figure out how to put a picture in the text.

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