The Day After Republican Surrender: World Financial Markets Celebrate!

Confounded Interest ^ | 01/02/2012 | Anthony B. Sanders

[whitedog57]

Last night, the Republican-held House of Representatives voted for the dreadful Senate bill laughingly called “The American Taxpayer Relief Act of 2012.” How is adding $4 trillion in Federal budget deficits over 10 years called “relief?” SOMEONE has to pay for the out-of-control spending. And that someone is taxpayers. american.taxpayer.relief.act

Here is CNBC’s Rick Santelli’s take.

The reaction? Fiscally-blighted European countries Portugal, Italy, Greece and Spain (PIGs) all saw sharp reductions in their sovereign bond yields. The US 10 year sovereign yield rose 7.1 basis points as of 12:35p EST.

The Dow Jones Industrial Average rose 224.60 points (or 1.71%) as of 12:37pm EST. Eurozone stocks rose even more (on the hopes of eternal government fiscal fiasco).

At least corn and wheat prices fell while gold and silver rose.

Yes, Washington took the easy way out. But at least we can look forward to the debt ceiling fight where President Obama stomps hit feet and McConnell/Boehner tap their inner surrender monkey.

I am having a gyro for lunch to mourn the US going down the path of Greek fiscal policy.

[kabar]

i ain’t much of a legislative strategerist. but something is stupid. The gingrichers didn’t run away from Michel, they took over. If the teaparty wingers cannot bring down the Boehner, then the teaparty ain’t got much strength in Congress.

The circumstances are not analogous.

I suspect that the Cantor ‘NO’ vote was approved from above to allow Cantor to succeed Boehner, if necessary, and cut off a genuine overthrow.

I suspect you are correct. Both Cantor and McCarthy voted no. Boehner may step down and not even contest for speaker. I know Cantor. He is squishy. He is not a tea party favorite.