The Telegraph – Fiscal cliff deal will add $4 trillion to US deficit, says CBO The Congressional Budget Office has revealed that the Senate-passed legislation to avert the “fiscal cliff” will add nearly $4 trillion to federal deficits over a decade, largely because it extends low tax rates for nearly every American. The congressional scorekeeper’s… Continue reading Will The U.S. Get Downgraded?
The New York Times – Bond Craze Could Run Its Course in New Year All but one of the 13 bank strategists tracked by Birinyi Associates expects stock markets to rise in 2013. When 2012 began, the same strategists were predicting a downturn in share prices. Even among mutual fund investors, there are signs that… Continue reading Everyone Hates Bonds, 2013 Edition Volume 1
CNN Money – It’s official: U.S. hits debt ceiling It’s official: U.S. debt reached its legal borrowing limit Monday, giving Congress about two months before it must raise the debt ceiling or risk causing the government to default on its bills and financial obligations. “I can confirm we will reach the statutory debt limit today,… Continue reading Coming This Easter, The “Super-Cliff” Debt Ceiling Fight!
The Wall Street Journal – In Europe, Investors Confront Familiar Story Europe still is in crisis. You’d better get used to it. It lasted only a few months, though, and by the next spring, Greek politics and Spanish finances had revved the crisis back up to full speed, clobbering markets. At the end of 2012,… Continue reading Europe In 2013
BBC Europe – Hollande vows to revive French supertax France’s President Francois Hollande says he still plans to raise the top rate of income tax after his 75% plan was struck down on technical grounds. In a national address on New Year’s Eve, he said the law would be redesigned, adding, “we will still ask… Continue reading Do Not Move Back Just Yet Mr. Depardieu
The New York Times – America in 2012, as Told in Charts The weak economy, widening income inequality, gridlock in Congress and a presidential election: Those were perhaps the dominant economic and political themes of 2012. To supplement the torrent of rhetoric, I offer charts to help provide facts and context for the debate around… Continue reading A Look At 2012 Using Charts
The Financial Times – Fresh stand-off looms after US cliff deal Far from ending the country’s budget battles, however, the passage of the legislation simply sets the stage for fresh confrontations in the coming months over the deficit and economic policy. The White House and Senate Republicans forged an agreement solely on the issue of… Continue reading Make No Mistake, The U.S. Is Still A Divided Country
The Wall Street – Late Obama Appearance Ruffled Cliff Talks With negotiators finally making progress toward averting the fiscal cliff, President Barack Obama on Monday staged a public appearance that for a few anxious moments seemed to derail the talks. The event was part progress report, part pep rally, as the president announced that a… Continue reading Obama And The Fiscal Cliff
None today
Five Thirty Eight (NYT Blog) – Nate Silver: As Swing Districts Dwindle, Can a Divided House Stand? In addition to the sharp increase in the polarization of the presidential vote, there has also been a sharp decrease in ticket-splitting. Far fewer districts than before vote Democratic for president but Republican for the House, or vice… Continue reading Why We Are Not Getting A Fiscal Cliff Deal (Or, What Wall Street Dealmakers Do Not Understand)
Business Insider – Henry Blodget: This One Chart Shows That The Fiscal Cliff Fiasco Is The Republicans’ Fault The Republicans, meanwhile, refuse to sign any deal that includes taxes on the richest Americans going up. This absurdly stubborn and impractical stance will hurt the entire country. And it’s based on a flawed premise: That the… Continue reading It’s All About Capital Gains
The New York Post – No AMT patch will hurt millions The AMT was passed in 1969 as a complicated formula to stop some 150 millionaires from paying less in taxes than the average Joe. Congress has “patched” the tax code periodically to ensure that the AMT didn’t suddenly hit tens of millions of regular… Continue reading When Can We File Our Taxes?