I am up on the story. I simply do not believe a single word that Obama says. When Obama actually signs a bill that fixes the top income tax rate at 35% and locks in the rate on long-term capital gains at 15%, only then will I acknowledge that he caved. Keep in mind that without Obama’s signature, all rates go up in 3½ weeks which is what he has always wanted all along. Also keep in mind that Nancy Pelosi still holds the gavel. I don’t trust her either.
If the extension is not signed soon there will be a big selloff on the stock exchanges as investors anticipate the increase in capital gains in 2011. It could be very damaging to the economy.