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A Trip Over the Cliff

December 26, 2012 – 6:13 pm

114918As we wait for the only major report out this week which concerns housing it appears the politicians in Washington are willing to drive the economy over the Cliff, the Fiscal Cliff, into the new year. With less than a week left the mood is that talks are still taking place but no one expects much before year end. There is even speculation that both sides of the argument want to go over the cliff for political gain.

Obama has said that he wants taxes to increase on everyone so he can blame the Republicans and the Republicans think they can blame the coming recession on Obama. Both are weak arguments. The truth probably lies in both sides believing that the recent elections gave them a reason to dig themselves into their respective positions: the President being stubborn as he was re-elected and the House Republicans standing on their staunch beliefs after retaining the majority in the House. Both sides believe they have the will of the people behind them.

The will of the people is that the government do the right thing and come up with some kind of compromise. A large portion of the people just want jobs and driving off the cliff is definitely going to drive the economy into another recession. How is that going to benefit anyone?

Good Trading
Steve Peasley

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