Once again the market falls for the politicians' snake oil (as we explained before [4]). Unconvinced? This is what none other than "Fiscal Cliff compromise is imminent" photo op participant Nancy Pelosi said moments later to the WSJ [5]:
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 [6] know ahead of time what the announcement would say, and did he buy any securities in hopes of a "short run" gain?