This was a huge and stupid political gamble on the part of the republicans....and they have already lost.
Every good outcome for them depended on winning the White House and control of the Senate ....and they didn't.
On the tax side, the President will let the Bush tax cuts expire, then propose a series of middle class tax cuts to replace them. If the republicans drag their feet, or attempt to obstruct those cuts, it will be suicide for them in the midterms and they know it.
On the automatic spending cuts that are supposed to take effect....those are across the board or not at all, and they include cuts in defense spending. The dems can hammer the house for cutting defense for months before any real damage is done, so they will have to vote to suspend those cuts..or risk the kind of showdown they lost when Clinton was in office.
Of course, all of this will play out in the most over dramatized slow motion clusterfuck imaginable...which could have some negative effects on the market...but again, those can be laid squarely at the feet of John Boner and Eric Cantor where they rightfully belong.
.....or the Repubs can take their medicine early and hope the bad taste washes out before 2014. They made this shit sandwich, now its just a question of when they are going to eat it, and how much.
On the tax side, the President will let the Bush tax cuts expire, then propose a series of middle class tax cuts to replace them. If the republicans drag their feet, or attempt to obstruct those cuts, it will be suicide for them in the midterms and they know it.
On the automatic spending cuts that are supposed to take effect....those are across the board or not at all, and they include cuts in defense spending. The dems can hammer the house for cutting defense for months before any real damage is done, so they will have to vote to suspend those cuts..or risk the kind of showdown they lost when Clinton was in office.
Of course, all of this will play out in the most over dramatized slow motion clusterfuck imaginable...which could have some negative effects on the market...but again, those can be laid squarely at the feet of John Boner and Eric Cantor where they rightfully belong.
.....or the Repubs can take their medicine early and hope the bad taste washes out before 2014. They made this shit sandwich, now its just a question of when they are going to eat it, and how much.
or....if they really do want to pay down the debt.