Obama To Make Statement At 1:30 PM, Stocks Pop Then Fade

Tyler Durden's picture

With just 3 hours left in the trading day, why not up the stakes a little in the soap opera and take it straight to the star character:

  • OBAMA MAKING STATEMENT ON BUDGET TALKS AT 1:30 P.M.

What will he disclose? Perhaps this, from the AP:

The contours of a deal to avert the 'fiscal cliff' emerged Monday, with Democrats and Republicans agreeing to raise tax rates on couples making over $450,000 a year, increase the estate tax rate and extend unemployment benefits for one year, officials familiar with the negotiations said.

 

But with a midnight deadline rapidly approaching, both sides were at an impasse over how to handle automatic, across-the-board spending cuts set to take effect on Jan. 1. Democrats want to put off the cuts for one year and offset the so-called sequester with unspecified revenue.

 

The deal in the works would return tax rates on families making over $450,000 to 39.6 percent, the same level as under former President Bill Clinton. The agreement would also raise tax on estates worth more than $5 million from 35 percent to 40 percent. Unemployment benefits would be extended for one year.

 

A Republican official familiar with the plans confirmed the details described to The Associated Press.

 

The officials requested anonymity in order to discuss the internal negotiations.

Some more from Reuters:

  • FISCAL DEAL WOULD INCLUDE PERMANENT ALTERNATIVE MINIMUM TAX FIX, EXTEND UNEMPLOYMENT INSURANCE BENEFITS FOR ONE YEAR - SOURCE
  • FISCAL DEAL WOULD EXTEND RESEARCH TAX CREDIT, WIND PRODUCTION TAX CREDIT AND INCLUDES "DOC FIX" - SOURCE
  • FISCAL DEAL POSTPONES SEQUESTER, WOULD INCLUDE SOME $600 BILLION IN REVENUE -SOURCE FAMILIAR WITH TALKS
  • FISCAL DEAL WOULD INCLUDE PERMANENT EXTENSION OF MIDDLE CLASS TAX CUTS - SOURCE
  • STICKING POINT IN FISCAL DEAL IS ON SEQUESTER DELAY; WHITE HOUSE SEEKING DELAY FOR A FULL FISCAL YEAR - SOURCE FAMILIAR WITH TALKS
  • FISCAL DEAL WOULD RAISE ESTATE TAX FROM 35 PCT TO 40 PCT - SOURCE FAMILIAR WITH TALKS

And no mention of the debt ceiling of course, or that there are no new spending cuts, or that this is at best a stopgap to get US to the debt ceiling debate in 60 days, or how this proposal would pass Congress, 

Algos, however, as usual don't care about specifics, and are rabidly buying everything because other algos are rabidly buying everything, at first...

 

And then fade...

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Temporalist's picture

Gold is at highs for the day...silver too.

Snakeeyes's picture

Yup. Obama, Barzini and Tattaglia fake like they will get the fiscal house in order, and then do ... nothing.

Everyone loves DC spending!

http://confoundedinterest.wordpress.com/2012/12/31/lets-make-a-deal-rais...

ihedgemyhedges's picture

Slam one can of Pabst Blue Ribbon every time he says "tax" or "the rich".

You'll be drunk by 1:34pm EST...........

Selah's picture

You are assuming that he will be on time.

French Frog's picture

The roasting of the shorts yet again (sigh).

As last Friday's drop was a 'bloodbath' (according to ZH), what should this pop up be labelled?

knukles's picture

bloodbath

The Illuminati and their Reptilian Overlords often bathe in the blood of innocent pre-nubile virginal girls for relaxation and Erudite Total Universal Enlightenment.

stormsailor's picture

my /es stop got taken out, sonofa............

Texas Ginslinger's picture

That upswing is a beautifull thing.

What I bought late Friday I sold this morning and made my gain for the week.

I do love volatility so.........

Doomer's picture

I'm betting it'll be something short and sweet, like "Bend over, bitchez!"

Taterboy's picture

Obama: We be investin in Lotto! You gots to be in it to win it!

pods's picture

The balls that these traitors have to think that they get a second crack at your accumulated capital after you die.

I say drive off the cliff, with a trunk full of nitroglycerin!  

pods

GMadScientist's picture

Seems pretty easy to shelter all but that first $5M, but if you'd rather be a drama queen and get your panties all twisted, so be it.

 

pods's picture

Well if you don't mind getting fucked as long as the dinner is good, I am not one to judge.

Just don't apply your logic to me.

pods

fonzannoon's picture

they will need a special dept to monitor boating accident.s

GMadScientist's picture

Best of luck continuing to both have and eat that cake.

fonzannoon's picture

LOL as if 3.5 mil or 5 mil applies to me. I will sit here with my crumbcake.

walküre's picture

You don't really own it unless you hide it. If you don't hide it, the world knows about it.

The more things change, the more they stay the same.

Just ask Russians, Chinese, Greeks, Italians, East Germans and so on...

Central planning and central banking go hand in hand when they fail.

tango's picture

You could also say that central planning inevitably leads to authoritarian states under the phony guise of "fairness".    It is absolutely astounding that ANYONE would think these extra taxes will go toward debt reduction - a case of intellectual dishonesty of the first degree.  What a sham!

Lewshine's picture

@ Tango,

And notice how the collective interest on Capital Hill has all but disappeared when it comes to the spending side - Poof!

Now, the whole focus from these clowns is getting more heroine to the junkie, while avoiding public riots like Greece & Spain...Which was the whole purpose of the "fiscal cliff" argument to begin with. 

 

Yes We Can. But Lets Not.'s picture

And if even 1 other human knows about it, it is *not* hidden.

pods's picture

Yep, two people can keep a secret as long as one of them are dead.

pods

walküre's picture

Let me preface by saying that this discussion is hypothetical. For the benefit of the goons at NSA and all other various alphabet government spy agencies

It is not betrayal when even your closest loved ones are uninformed rather it is for their own protection. I know what I know and what I know is what I can defend to my grave.

 

Renewable Life's picture

They are NOT getting this shit thru the House, what is everyone excited about????

Did I miss something here, the fucking House sure as shit didn't send them a bill to pass and the Preident can sign this shit into law!!

Boehner is a dead man as the speaker if he puts this up for a vote, plus not 100% of democrats are going to vote for this shit either, lookout Wednesday!!!

GMadScientist's picture

The TeaPotDome Express' Last Hurrah!

 

Fish Gone Bad's picture

I have jury duty so I will have a lot of time to just sit and "get informed".

Lewshine's picture

I share your frustration, but...Don't be an embecile, you speak as though the markets move based on something other than where they are directed. Even as you watch equties move up on not one shred of evidence on any deal at all thus far!  If they can do that (and they do almost everyday, as they did in Europe for two years) - what can't they do in the midst of a nuke holocaust?? The last 5 down days were designed to get cheap calls regardless if whether cliff issues are even addressed! AND, the "fiscal cliff" WAS NEVER A REAL ISSUE. It was manufactured as a slight of hand, keeping us taking sides (Dem/Rep) while our government imposes europe like tax burderns - Can you say: AUSTERITY??? Can we all agree we are slightly shaper than your average media pundit?...THINK!!! 

Renewable Life's picture

I hear you, but if you think 39% top tax rate is Austerity, you've got a big surprise coming, that shit is just 1996, the fucking austerity hasn't even begun to be whispered about yet!!!!

Renewable Life's picture

That fool can talk until the cows come home, no ones fucking voted yet!! If those cocksuckers were so sure they had it done, then vote assholes, preferably while the market is still open!!!!!!

Ya, that's what I fucking thought!

No vote, it's all bullshit!

azzhatter's picture

Is he on The View today?, David Letterman? Jay Leno?

 

Fuck You Bernanke and Fuck You Obama

PAWNMAN's picture

The politicians are going to save us all with a last minute deal! NEVER would have saw this one coming!

Boilermaker's picture

SURPRISE!!!

Get ready for BLAST OFF!!!  Time to get the New Year's Eve party rockin' early for the 401(k) masses!!!

WHEEEE!!!!

It's so funny to read the 'market is going to sell off' comments here.  Like, this wasn't fucking predictable as all hell.  Yea, they're going to have a massive flush on NEW YEAR'S EVE with everyone watching.  Fucking please.  Stop it.

magpie's picture

What European index will be best to short during the cliff dive

khakuda's picture

and the market celebrates what we knew would happen all along: more taxes and zero spending cuts.

NoDebt's picture

Bingo.  Been saying that around here for weeks.  Taxes will go up, spending will not go down.

I wonder if politicians even realize they aren't really in control of things any more than the "great unwashed" like ourselves.  They're just higher-ranking employees. 

Now dance for your dinner, bitchez!

Renewable Life's picture

Ohhhhhhhhhh my god, if we didn't avoid the cliff, 800,000 employees at the pentagon would have been laid off!!! Ohhh the horror!!

I have two thoughts about that.....

1. There's 800,000 employees at the pentagon that could be laid off and the place could still function???? Are you fucking kidding me? That should scare the hell out of any American itself!

2. That sounds like the greatest thing I've ever heard!!!!

Joe moneybags's picture

So much for Friday's article describing the after-hours bloodbath, and the forced margin selling from the bulls.  Hopefully, the traders here faded the usual prediction of doom.

Boilermaker's picture

PSSST:  It's all fucking bullshit.  If you don't have the playbook, and you don't, then you don't know jack shit either.

azzhatter's picture

We went off the cliff awhile ago just waiting to land

tango's picture

Exactly azzhatter.   We crossed the Rubicon (as Paul stated this week) some time ago.  The only question now is how we handle thecatastrophe that will inevitably follow.  This is why I don't go ballistic, scream about killing bankers or hating the 1% - it's not their fault we reelected the same bozos time after time, especially when the politicians were quite open about what they were going to do.    All this phony rage against strawmen is misplaced - they're simply following the script decided on by the American voters in our urge to have it all here and now (and let others pay for it).  The day of reckoning draws nigh.

Renewable Life's picture

I love your analysis! I can tell your ready to survive this shit coming down the pipe, because your calm, not clouded with emotion, and clear about the shit you face!

I feel the same, good luck!

fonzannoon's picture

Sounds like a good deal. The repubs should pass it and swear to use the spending cuts in the debt ceiling debate. Then when the debate comes the Repubs should fold and nix the spending cuts at the last minute. Then the repubs should change their party so it  is just one big democratic party. In the meantime the middle class can get the AMT rammed up their ass and not notice any of this.

Dollar Bill Hiccup's picture

This market ... Tourette syndrome.

DrDinkus's picture

a hangover does not mix well with this price action.

cdude's picture

Oh, the sky isn't falling after all?  Up, up and away!