As we saw during the summer of 2011 with the debt ceiling debate, it seems like our elected officials can only strike a deal as the clock is ticking down to zero. And when they finally do forge an agreement, it ends up being one atrocious one after another. So yes, I think the bill that came out of Congress is a total joke. It doesn’t do a single thing to put our country on a sound fiscal course and once again, our leaders just kicked the can down the road.
Did anyone actually read the bill before they signed it? I know I haven’t, but I have read clips about some of the nonsense that was thrown in.
What totally shocks me is how few people realize that their own taxes will rise with their first paycheck in 2013. The 2% payroll tax holiday has been killed and buried, not just for those making $450,000 or $250,000, but for all Americans. And let’s not forget about the taxes associated with ObamaCare that begin right now.
Now matter how anyone slices it up, tax are going up right away and will likely go even higher ovr the next 18 months. That’s not exactly the elixir our economy needs right now. But I will have more on this in the next Street$marts.
Market wise, while I (and our portfolios) have very much enjoyed the two day near vertical rally, I have a very tough time believing it is here to stay and 2013 will be a monster year for the stock market. I would love to be wrong and see the Dow soar to new highs and way beyond, but right now, I think we should temper our expectations. I will have more on this during my Fox Business segment on Thursday as well as in the next few Street$marts.
Hoping you had a happy and safe holiday season!