TODAY'S HEADLINE: Fiscal Cliff Talks Frozen
Two thoughts. First and, by far, most important: If Congress fails to act the world will not come to an end. Far from it. In fact I believe the complete failure of talks is the optimal outcome. We need to aggressively deal with the national debt. This is the only approach that does that.
I am confident the economy will not go into recession. In fact, I predict with confidence, it will improve. After all Nancy Pelosi's $800 million dollar stimulus had no effect on the economy. Neither will this tax increase coupled with the minor spending reduction.
This is much ado about nothing.
Second, in spite of my bold suggestion we allow the tax cuts to expire and the spending cuts to take effect, neither will happen. Compromise will be reached.