House Republicans Fold

Tyler Durden's picture

Presented with little comment (via Bloomberg):

  • *HOUSE REPUBLICANS ABANDON EFFORT TO ADD SPENDING CUTS TO BILL

It appears everyone grows tired of the pantomime, even the main actors. Well that was fun while it lasted...

 

Is this how Boehner feels?

And is Cantor warming up his gavel?

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john39's picture

Fuck you organized crime cabal running the central banking enslavement scam.

maxmad's picture

Fold like one of my cheap azz suits!!  Cowards!

spastic_colon's picture

obama gave everyone a raise last minute, he can even buy rebub votes, why would any of them even pretend that they were gonna try and send this back?

TruthInSunshine's picture

 Kabuki Theater of The Worst Kind, Bitchez Tue, 12/11/2012 - 12:40 | 

 

 

 

"Let me state this clearly, yet again, as many here and elsewhere have as well:  This is all theater. The fiscal cliff is a non-issue. Both "different" parties will agree on something, if they haven't done so already, that manages to screw over the largest % of actually productive businesses and people in the U.S., soon."

Having predicted this, as so many others did, this will be the biggest sell the news event (regardless of short term action) that most will be able to recall. The secular bear that's been on the rampage for 12+ years now is just getting warmed up (think about the Nikkei's 23 year 94% haircut in real terms). Just stay out of massively rigged casinos, save real wealth, and ignore the Ponzi, and you will see the Muppets (the ones that are left) get anally raped yet again.

redpill's picture

This "deal" is nothing short of treason.  The current elected officials are a clear and present danger to the security of the United States and its Constitution.

 

10mm's picture

Constitution,did I hear constitution.

SafelyGraze's picture

http://oi50.tinypic.com/2jseuu.jpg

empire: and now, sheep .. you will die

sheep: don't taze me, bro

MSM: actually, debt-tasers are good for you

dwdollar's picture

Next up... gutting of the 2nd Amendment. Anyone still believe it isn't possible???

Your Repubicunts won't let you down!!!

fockewulf190's picture

I love the smell of $4 trillion bucks vaporizing in the morning.

This farce ensures the destruction of the dollar. Keep stacking your phyzz for all your worth. The "Great Reset" will hit humanity like a gigantic fiscal scyth....and there will be blood.

Anusocracy's picture

Government, the enemy of the people. Always has been.

Four hundred million dead at the hands of government in the 20th century. How many in the 21st?

When will people learn? Never?

fockewulf190's picture

They will learn when wheelbarrows start trading on the CME as the new, hot, commodity.

Fake Jim Quinn's picture

The NY Times, on Monday,  had an editorial piece from some Constitutional law professor saying he believes the Constitution is archaic and should routinely be disobeyed. He cited examples of the founders even doing so. Stand by fellow ZHers, the groundwork is being laid for the full end of the USA as we understand it. See the piece here: http://www.nytimes.com/2012/12/31/opinion/lets-give-up-on-the-constitution.html?pagewanted=all&_r=0

surf0766's picture

That groundwork started over 100 years ago in 1875 when the first socialist party in the U.S was started.

It is like finding out that we have not repaid out debt since 1959. Shocking at first then the realization sets in that we have been trained for decades to the idea of marxism or NWO whichever term you prefer.

 

 

Anusocracy's picture

The groundwork was laid with the Constitution.

The left and right built the structure.

CH1's picture

The left and right built the structure.

Parties built the structure. They weren't always denominated as left and right, as in our time.

George Washington warned about precisely that in his Farewell Address, only at that time, they said faction rather than party.

AgAu_man's picture

For Chrissake, look at the author gents.  Need we say more?

Go Tribe's picture

The Constitution has been shredded so many times in the last 150 years that it's unrecognizable and now ignorable. For all intents and purposes, it doesn't exist. Complain too loudly and you can be arrested and put away forever without a trial.

bushwarcrime's picture

Yeah, but it's only since the end of WW2 that the M.I.C. has gained control, and please spare me the Reaganisms,  I just watched "Iron Lady" .  High and mighty thinking only goes so far when the cheap oil runs out.

fonzannoon's picture

Truthinsunshine you are a lot wiser than I am but if this thing passes in it's current form and the div/cap gains rate goes to 20% only for those above 450k It's possible a huge rally happens. I am convinced at some point Bernak walked in that room and said "don't fuck with the market. You break my toy and it's game over" and walked out.

I will go even further. The 10yr could go to 2% in January. People start getting nervous that the big rate rise is finally here. If the S&P is rallying hard all through Jan the repubs make some big hardball speech about holding the line on the debt ceiling. The 10yr falls back to 1.5% in late feb. The bond shorts take it in the ding dong. They eventually punt the debt ceiling. Market rallies. Rinse, repeat.

WonderDawg's picture

Sounds great, until one of the ratings agencies pisses all over it and we get another downgrade. Then what?

fonzannoon's picture

The ratings agencies are just part of the play. They do what they are told.

This will not end well. We all agree on that. But I highly doubt it will be because a ratings agency got religious and declared us junk, which is what we are. The people that work for these agencies probably get paid in dollars and live a somewhat regular life. This would be like them blowing their brains out. We will be extremely highly rated right up till the end. Just like Lehman etc.

The Alarmist's picture

SEC is in the process of hiring two high-level staff accountants/ auditors to look specifically at the NRSOs ... don't worry your pretty little head over future downgrades.

yogibear's picture

Porn usage will go up at the SEC.

TruthInSunshine's picture

@fonz:  Why would a rally occur because capital gains rates and tax rates on dividend income rise by 25% (from 15% at federal level now to 20% at federal level) on upper income taxpayers & remain the same on those in lower tax brackets (even assuming they do)?

The equity market is priced at nosebleed levels and has actually lost 55% in value in real terms in the last 13 years (assuming one was indexed, rather than "picking stocks"-- which very likely could have and did blow them up many times over).

fonzannoon's picture

So this is just my 2 cents. I believe the fact that it is going to 20% from 15% only on those who make 400k plus is a much smaller increase than what a lot of people believe O wanted. I personally (not that it means anything) figured we were going to 25-30% on anyone over 250k.

I really thought he was going to take a good whack at the market. I must be stupid to not have realized that he has been the market's best friend from day 1.  As I said above I also think that is a product of Bernak getting in there and making sure nobody pissed on his sand castle.

If this passes CNBC etc. will be pounding the dividend payers tomorrow. I am not saying anything is fixed. But I think it could be good for a 10% pop to start the new year.

Anyone else feel free to chime in here. Am I wrong in thinking this was a smaller hike than expected?

- I am in no way arguing your long term point. This is a secular bear market and even with the fed in there I think we head lower over time.

TruthInSunshine's picture

I totally disagree.

The bullish meme would have been a permament extension of the "Bush tax cuts," which would have made permanent the 15% federal tax rate on both capital gains and dividend income, and the operating assumption by "those in the know" for many, many months now was this was a fait accompli.

fonzannoon's picture

Wow, interesting. I see that aspect totally different. Then again it is not really that interesting because all I am really making a case for here is a short lived rally. But I would not put any chips on it either way. I have no doubt that tomorrow am that monkey Cramer will be all over this as extremely bullish along with the rest of those ass clowns. The market is our last fake piece of wealth for a lot of people. I think they will push it as hard as they can for as long as they can. Interest rates cannot go up and the market cannot go down. From here on out it is just not allowed.

 

TruthInSunshine's picture

The inititial bullshit was about saving 1.6 trillion over a decade through smoke & mirror cuts, and that would have somehow allowed for the the Bush capital gains and dividend interest tax rates to become permanent for all but the very wealthy (e.g. a million in annual income or more), and maybe even not for those households if enough "savings" via cuts could happen.

Now, there will be tax rate hikes and loss of deductions (also known as tax hikes) on not just the upper income households, but anyone who is a net payer of taxes (think AMT, etc.).

This is now going to turn into a piecemeal, even more politicized process, laden with a ton of uncertainty, where the only thing currently known is tax rates will rise as will the debt (which is in significant part the opposite of what was supposed to have happened).

fonzannoon's picture

I thought the loss of deductions only applied to those over the 450k threshold and that most people avoided the amt bullet if this passes. Basically, other than the payroll tax going up, my impression is everyone under 450k won't see that big of a difference. I am confident most people above 450k will find a way around this.

I do not in anyway disagree with your larger point. I just think when you have a Bernanke, every problem can be QE'd. That can go a long way, especially with the reserve currency, until it no longer works.

Everybodys All American's picture

Don't forget Obamacare will add an additional 3.8% to all capital gains and dividends on all tax payers as well beginning in 2013. Happy New Years btw.

fonzannoon's picture

Great point and happy new years to you as well.

TruthInSunshine's picture

Happy New Year to all fellow ZHers.

*I have many people on my zhchat list, but don't understand what the benefit is, as I never get insta-messages (maybe because I run with adblock+, https everywhere, ghostery and betterprivacy?).

Miffed Microbiologist's picture

Yeah TIS, I had the same question. Mr Miffed told me zhchat doesn't work on my iPad. Since that's all I have I'm kind of SOL. Makes it hard to contact someone unless mr miffed sets it up on his PC.

Miffed:-)

I am a Man I am Forty's picture

You contradict yourself, stay out of the market, you will lose.  Market is going higher.

akak's picture

A "market" is a nexus of open and honest exchanges transparently conducted by two parties in good faith, with prices determined solely by relative supply and demand.

Where do you see any such thing today?

fonzannoon's picture

Thanks for saying it better than I can with less words Akak. This is not a market. It is a mechanism to perpetuate the idea that people still have some wealth. It will fail to hold up at some point. But until then people on here will continue to get skewered thinking they can profit from understanding the big picture.

WonderDawg's picture

You make a good point. People betting against the Fed have had their ass handed to them the last 3 years. But, the effects of each QE iteration are less dramatic and of shorter duration. We're still below the Sept 14th highs of 2 QE's ago. The market has had some ups and downs, but you can't say the intermediate term trend is up. I agree with you and Akak that this is not a market, and trying to profit from what the big picture tells you it should be doing has probably wrecked quite a few portfolios. At this point, I still think that after an initial ramp, this will be a sell the news event, but I've been wrong enough times to know that nothing is certain, and nothing is what it seems. One day, though, it's gonna be a helluva short.

fonzannoon's picture

You know I don't even think the bears will get their day in the sun anymore. This market is so far gone, when it drops, it will drop so fast and so hard they will basically shut it off and call it some kind of tech malfunction. At that point we enter total chaos. I know that sounds nuts.

WonderDawg's picture

I get it. I'm starting to feel the same way. If it happens that way, I don't think gold and silver will save you, either. I don't know what it's going to look like when it happens, but I do think it happens in my life time, and I do think it's going to be a fugly mess.

HeadintheGame's picture

Skull and Crossbones eh?  Looks like a frat pin I used to wear a hundred years ago.  Yo?

 

Oldwood's picture

How do we stop them from burning down the house if we keep paying for their gas?

bushwarcrime's picture

I don't know where you guys grew up but where I did 250K is a boat load of money.  If you can't get by on it you must be effed up.  If you complain about how much you take home on 250K you are spending way too much on god knows what.  If you think taxing people over 450K is going to hurt the economy, move to Alaska or Montana and be a hero tough guy. Taxing capital gains?  Joe 6 chins has never received capital gains.  Jane 60 inch waist doesn't know what the eff a dividend is.

bonzo112358's picture

I hate to agree but these money managers that are completely out of touch with the 99% will use this to rally the market probably for most of January.  If you have an itchy trigger finger to go short be careful, patient and watch for the roll over.  The higher the market goes the more there is to make on the short side.  Yes, we will continue to get bad macro numbers as we have been but they will simply blame that on the fiscal cliff not being resolved for the month of December and continue to buy the market.

Bad payroll this Friday?  Fiscal Cliff.  Bad earning in a few weeks?  Fiscal Cliff.  Not enough iWhatever sold for Christmas?  Fiscal Cliff.  We all know this will end badly and deservedly so.  I just hope I'm smart enough to notice and go short or at least be in all cash before it does.

GCT's picture

+1000 if I could TIS.  I knew they would pas the deal and most with any sense knew they would. Treason in my mind but what do I know.

Banksters's picture

What, you mean the summer of recovery might be put off until 2020?  

Stoploss's picture

No, this is good.

Now we need to start the house resignations so the fascists have to own it.

They have to own it.

Fastest way to that end is mass resignations.

Stay the course and dump the rope in their lap.

NOW...

Resign House members.

HeadintheGame's picture

No, folding more like a three egg pudding.  They are disgusting.  Now Cantor votes "No" on a highly visable bill.  He is all the sudden a restrained conservative.  Gag me with a spoon.  The American people need a leader who has balls larger than beebees.  Cantor ain't it.  Walter Jones for SOTH.