re: the Fiscal Cliff Mini-Deal, the stock market’s vote is in – they like it.
I should qualify that – they like the fact that there is any deal in place, even if just a mini one.
Besides, when is a mini anything ever a bad thing, anyway?
Mini-skirt = good, Mini-M&M’s = good, Mini-iPad = good, Minnie Driver…okay that’s the exception that proves the rule.
But what do the “celebrity economists” think of the Cliff Mini-deal?
Phil Izzo at the Wall Street Journal has a round-up…
–On the positive side, the compromise averts a mix of tax increases and spending cuts that would have done more harm than just push the nation into another recession. It would have also seriously undermined the hard-earned healing occurring in the housing sector and in many families’ stretched balance sheets. With that, our economy would have experienced a significant air pocket, and would have faced an even more difficult subsequent recovery. As important as this gain is, it is unfortunately not overwhelming. The hard-negotiated political compromise does little to address the consistent headwinds that undermine growth, hold back corporate investment, and dampen job creation. If the objective were to promote employment, the nation’s most urgent challenge, the compromise prolongs crippling political uncertainty rather than removes it.–Mohamed El-Erian