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Everyone’s Worst Nightmare Has Come True: The Endless Greek Bailout Has Now Shifted to D.C.


Tax part of fiscal-cliff deal reached, says McConnell

Lawmakers have reached an agreement on all tax issues related to the fiscal cliff, Senate Republican leader Mitch McConnell said Monday afternoon, adding that negotiators are “very, very close” to a broader deal.

Optimism about averting the fiscal cliff increased Monday amid positive statements from McConnell and President Barack Obama, who during a public appearance at the White House said: “They are close, but they are not there yet.”

McConnell called for an immediate vote on taxes, but one hadn’t been scheduled as of Monday afternoon.

 

http://www.marketwatch.com/story/progress-cited-as-fiscal-cliff-deadline-nears-2012-12-31

 

Liberals upset by emerging fiscal-cliff deal

Liberal Democrats, inside and outside Congress, were grumbling Monday as more details emerged about the possible deal to avert the fiscal cliff.  It was unclear if the unhappiness would keep the Senate from voting on the measure.

For instance, former Clinton cabinet member Robert Reich called the deal “lousy.”

One common complaint was that President Barack Obama did not win any concessions from Republicans on the debt ceiling.

If the limit is not raised by late February or early March, the U.S. would default on its debt.

http://blogs.marketwatch.com/election/2012/12/31/liberals-upset-by-emerging-fiscal-cliff-deal/

 

If Greece’s default isn’t arranged by parliament, it will enacted on the streets with bloody consequences – November 12th, 2012

The Greek parliament passed an austerity budget yesterday, agreeing to a further €9.4bn of cuts including to all state salaries and pensions. Next year will see the economy shrink for the sixth consecutive year according to government forecasts, declining a further 4.5pc. Unemployment is already at 25pc and, despite spending cuts, state debt will hit 189pc of GDP next year (and rise to 192pc the year in 2014/15 according toFitch).

The news cycle in Britain may have moved on, but the rioters haven’t. A further 15,000 surrounded parliament yesterday. The country is so wracked by financial and social breakdown that it now resembles a hospital patient in a vegetative state, kept alive by measures which only heighten the pain experienced before the inevitable end.

 

http://blogs.telegraph.co.uk/finance/thomaspascoe/100021236/if-greeces-default-isnt-arranged-by-parliament-it-will-enacted-on-the-streets-with-bloody-consequences/

Wilbur Ross Sees Recession, Warns of ‘Greek’ Situation

Money News: The U.S. economy faces a recession if the nation goes off the fiscal cliff and key tax cuts fully expire at the end of this year, said Wilbur Ross, chairman and CEO of WL Ross and Co. 

And, in the wake of news the U.S. will hit its debt limit earlier than expected, the billionaire financier warned that the United States could soon face its own “Greek” style debt situation.

Failure to stop automatic tax increases set for Jan. 1 “would obviously have a big negative effect on disposable income and consequently, I believe would put us back into the recession when coupled with the spending cuts that are also part of it,” Ross told Newsmax TV in an exclusive interview Thursday.

Ross says that even a compromise deal that stops tax increases for many still may not save the U.S. economy.

“I think that if we don’t go over the full fiscal cliff, because we will go over some sort of a cliff even if you only raise the rates on the high-bracket people, and even if you cut back on the sequester, there still will be jolts to the economy,” Ross said.

“So the question isn’t whether or not we go over a cliff, it’s just how steep is the cliff.”

It Is Now Official: We Are Going To Hit The Fiscal Cliff And Breached The Debt Ceiling!

No vote in the House tonight, for sure, so technically we are going to hit The Fiscal Cliff.

That doesn’t mean that there isn’t almost a deal done.

Voting tomorrow or the next day might help the GOP at the margins, so it can claim it never voted to raise taxes.

Read more: http://www.businessinsider.com/technically-we-are-going-to-hit-the-fiscal-cliff-2012-12#ixzz2GfTZreJl

US officially hits debt ceiling, Treasury Secretary Timothy Geithner says

http://www.washingtonpost.com/blogs/post-politics/wp/2012/12/31/u-s-officially-hits-debt-ceiling/

 

BREAKING REPORT: House Won’t Take Cliff Vote On Monday

The U.S. House of Representatives won’t vote on a tax-and-budget deal Monday night, meaning the country will at least temporarily go over the fiscal cliff. Word of the House’s decision came after both President Barack Obama and Senate Republican Leader Mitch McConnell cited progress in talks, and McConnell said a tax deal is done. McConnell said the two sides are “very, very close” on an overall deal. Stocks surged Monday as leaders expressed optimism about an agreement.

 http://www.marketwatch.com/story/no-vote-in-house-means-us-goes-over-cliff-2012-12-31?link=MW_home_latest_news

 

As we forecast back in November, it is now official that the House will not vote on any deal out of the Senate, assuming there is one which there won’t be of course, later today, which means America will officially slide off the Fiscal Cliff. And now cue everyone being very hopeful and optimistic a deal will get done momentarily, if not sooner, in 2013. Of course, we all know just how far optimism takes America’s dysfunctional Congress. The biggest irony in all of this is that the only winners today were the much hated “1%”-ers, whose taxes may or may not go up, who just got to book major year end profits on this last minute ramp. The remainder of America’s population can quietly look forward to 2013 with “hope” and “optimism” that in 2013 Congress will finally stop being dysfunctional. Good luck. Oh, and before we forget, America just breached its debt ceiling: now the pillaging of various government retirement funds begins.

OVER THE CLIFF WE GO!

The U.S. is expected to go over the “fiscal cliff” at midnight Monday, but President Barack Obama and Senate GOP leader Mitch McConnell said an agreement to prevent a middle class tax hike was in sight.

Obama said more work needed to be done to avoid other pending issues, but McConnell told the Senate: “Let’s get what was agreed on and get moving,”

http://www.cnbc.com/id/100345848

Senate Deal “Apparently Short Of Needed Support”

Update: U.S. Senate will attempt to vote on fiscal cliff Monday night, but still work to be done – Sen. Kyl. So the deal is done, but there is “hope” it passes. Should be good for another 10 ES points.

* * *

Everyone’s worst nightmare has come true: the endless Greek bailout has now shifted to D.C., where deals are leaked, rumored, preannounced, and priced in, long before they are discovered to never have been there in the first place. The winners, as in Europe: hedge funds, and caterers. Everyone else is a bystanding loser.

From Reuters:

Skeptical U.S. Senate Democrats requested a meeting on Monday with Vice President Joe Biden about the tentative deal on the “fiscal cliff” that he is forging with Senate Republican leader Mitch McConnell, a Democratic Senate aide said.

 

With the deal apparently short of needed support, Democrats are hopeful that Biden will meet with them, but have not yet received a commitment, the aide said. Some Democrats complain that Biden went too far to find common ground with McConnell. Congress and the White House face a midnight deadline (0500 GMT Tuesday) to avert the fiscal cliff of tax hikes and spending cuts.

And now we look forward to tonight’s Senate vote on the deal which “passed“… It passed right? The market said so.

http://www.zerohedge.com/news/2012-12-31/senate-deal-apparently-short-needed-support

 

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