My column from today's Roll Call explains how the debate over the fiscal cliff is proving many of the (largely GOP-driven) beliefs that have dominated the federal budget debate for the past decade are nothing but myths.
Fiscal Cliff Should Alter Budget Debate
Other than the fact that we’re now two weeks closer to its tax increases and spending cuts going into effect, not much has really changed about the fiscal cliff since my last column was published two weeks ago.
The Dow Jones Industrials Average was in negative territory on Friday morning when congressional leaders emerged from their first fiscal cliff meeting at the White House. At that point the Dow was down 59 points.
But based on the totally innocuous and meaningless statements from the leaders that the meeting had been "constructive," the Dow rallied significantly. Within an hour, the Dow rose by 104 points from its pre-statement low. It ended up almost 46 points for the day.
Here's what ABC News reported was said by three of the congressional leaders who attended the meeting:
My latest podcast -- the third in my new weekly series -- is the stage and screen version of my latest reading of the fiscal cliff tea leaves.
My column from today's Roll Call explains why the letter about avoiding the fiscal cliff sent last week by the CEOs of many of the biggest names on Wall Street to Congress and the White House was something of a bad joke.
Unfortunately, the Fiscal Cliff Joke Is on Us
Have you heard the one about the big-name financial services CEOs who last week released a letter to Congress and the president demanding they do whatever it takes to avoid the fiscal cliff?
I have no doubt the CEOs were sincere: The fiscal cliff is terrible policy and a ridiculous situation that should be avoided.
My column from today's Roll Call explains why and how Wall Street is again...or, rather, still...demanding a higher rather than a lower federal deficit and that the bond market vigilantes that legend says are lurking in the economic woods actually don't exist today.
Bond Market Vigilantes Again Cheering Deficits
I first used the phrase “deficit cheerleaders” in a column more than two years ago to describe what Wall Street bond traders were really telling Washington, D.C., about the budget.