Friday, December 21, 2012

Repost--Ruh Roh: The Path of Equities During the 2011 Debt Ceiling Debate vs. During the Fiscal Cliff Debate

This didn't get the attention I thought it deserved when we posted on December 6th so here's another go at it.
DJIA futures indicate -166, S&P -18.60.
From Bloomberg via ZeroHedge:

Chart Of The Day: Deja Boo

As an update to our comment last week on the three 'F's of US fiscal-policy-making; it seems we are following the path of last year's debt-ceiling debacle ever more closely. Once again - do we need a 20% drop in US equities to spur the politicians into action? As they try and wedge a square peg of higher taxes into a round peg or spending cuts, we suspect so...