Wednesday, January 2, 2013

Congress kicks can for six to eight weeks with 11th hour tax bill

As the stocks markets jump on Jan. 2 in the aftermath of the 11th hour fiscal cliff tax agreement passed by Congress last night, the final consequences will not be seen for at least six to eight weeks when legislators are forced to deal with the debt ceiling, and potential spending cuts.  In fact, the showdown between Congress and the President appears to be looming large as Barack Obama declared there would be no room for negotiation on adding more debt, and Congress appears likely to once again give in without receiving any cuts to the ever-expanding Federal budget.

This sentiment was validated by CME trader Rick Santelli on CNBC earlier today, and he shows no surprise in Congress's inability to accomplish the task of fiscal responsibility.


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