Congress Passes Fiscal Cliff Deal

We now see who are “millionaires and billionaires” in practice.  They are individuals with income over $400,000 or married couples with income over $450,000.  Their top tax bracket rises from 35% to 39.6%, an increase of 13%.

The capital gains tax rate goes from 15% to 20%, an increase of 33%.

The temporarily reduced payroll [...]


Fiscal Deniers

Everyone today is talking about the “Fiscal Cliff”.  It is a small decrease in spending combined with a significant tax increase.  Let’s put this in perspective.  The budget for fiscal year 2012 was $3.8 trillion and the deficit (shortfall which had to borrowed) was $1.1 billion.  If no deal is reached, and we go “over [...]


Fake Deal Rushed Through Congress

Congress broke a rancorous stalemate Tuesday to pass legislation designed to avert the so-called fiscal cliff. But the compromise bill, which blocked most impending tax increases and postponed spending cuts largely by raising taxes on upper-income Americans, left a host of issues unresolved and guaranteed continued budget clashes between the parties. …

In two [...]


Fiscal Cliff Result: The Can Is Kicked

Nothing happened.

I was hoping that we would go over the fiscal cliff because taxes would go up on everyone. I think everyone should suffer the pain of paying for the government’s uncontrollable spending. Perhaps the “middle class”, whom politicians believe are clueless, would then start to think about the future of our country. Perhaps [...]


The Fiscal Cliff Looms Because Mainstream Economists Got the Strength of the Post-Crash Economy Wrong

A problem with “fiscal cliff” economic reporting is the lack of context.  It is widely said that if only the “uncertainty” of the cliff were resolved, then businesses would invest again and all shall be well.

The problem, though, is that said fiscal cliff (or, fiscal slope) is the direct result of the failure of [...]


Let’s Fall Off The Cliff

We all have been following the dance in Washington about the budget problem that makes headlines every day about how Congress and the Obama Administration are heading for a fiscal cliff. Savvy political observers say that Obama has the upper hand in this fight to lay more taxes upon the rich. The more frantic say [...]


The Japan Syndrome

Before taking a multi-week break with family in which I intend to post only for major market action, it’s time for some review.  The macro theme in the U.S. economy and financial markets strikes me as just what I stated in one of my first blogs.  This is what I wrote on January 9, 2009 [...]