Fiscal Cliff is Avoid for Now
US lawmakers managed to approve a deal which will delay the increase in taxes and budget cuts, preventing the economy from falling off the fiscal cliff.
The deal is not a final solution, as the spending cuts were only delayed by two months to give congress time to find a more permanent solution.
Great, let's draw out the goby some more!
Why should there be a final solution? a solution would take the politicans out of the limelight, they would have no more flights, meetings dinners and socialising; no more journalists begging them for interviews. They have absolutely no incentive to put a stop to this highly enjoyable process. Amongst the politicians, no-one is a winner if a solution is found - expect more .
Even thought the markets have rallied on the news of the new deal to temporarily avoid the fiscal cliff, will the fact that the solution is only very temporary hurt the markets, and the economic recovery, in the long run due to the fact congress has offered no certainty for the future?
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