Do not expect any changes to the trends of polarization and party non-conformists is the message from JPMorgan's CIO Michael Cembalest. As he explains moderates like Blue Dog Democrats and Rockefeller Republicans are now artifacts in the Natural History Museum, having given way to their more ideological offspring (through retirement or after having been beaten in primaries). If anything, Cembalest believes the House may become even more partisan after apparent losses by moderates in both parties. After a better than expected night for Democrats given Senate results, the fiscal cliff looms; With the status quo maintained, a divided government goes back to work to solve the Mutually Assured Fiscal Destruction problem. However, electoral results suggest the country is in no mood to address entitlement issues right now, will defer them to another day, and continue to shift towards a high-Federal debt economic model that bears some resemblance to Europe and Japan. In the 1950’s, the solution to 80% Federal debt was not taxation, austerity or inflation, but growth
http://www.zerohedge.com/news/2012-11-07/previewing-four-more-years-divided-states-america
Obama is an ego maniac and a wannabe dictator. He won't want to compromise at all. Those coal mining morons in PA voted themselves out of a job.
ReplyDeletelivestrongest,
DeleteWhile I might refrain from using the same noun, I am a bit puzzled at their voting position, if they did vote for Obama, given his rather clear position on coal.
Jean
Tree huggers, such as I, are not opposed to coal, we are opposed to the outmoded plants which burn coal is such a manner as to maximize the pollution. Modern plants can use coal efficiently with a minimum impact on the environment, and our lungs. Coal miners are opposed to the diliution of regulations which leads to unsafe working conditions and death, from mine collapse or black lung disease. What good is it to have a steady job if it leads to an early death?
DeleteMick,
DeleteBefore you close 180 coal fired power plants, make sure a new gas fired plant is online ready to pick up the load. This hasn't been addressed. Just shut the plant down, let the people live in the cold and dark.
Living in the cold could lead to a early death for many Americans.
Am I too cynical to question the call for moderates from a bankster? While I would not pull a Bush and claim "I won political capital" (with a thinner margin of victory), I believe the Republicans should be the ones doing some soul searching today. And I know that won't happen based on what I saw on Fox last night.
ReplyDeleteTrue progressives have not been very happy with Obama, and in hindsight, Clinton also signed off on things like the repeal of Glass/Steagall and the trade deals that devastated the middle class. What I think Republicans should do is irrelevant. Looking at the Demographics of voters, however, the Republicans have an absolute lock on what is a shrinking demo, namely old white people. If the Republicans continue business as usual TD, I believe they will continue to see their numbers shrink. Ultimately, nothing Obama does will please the right. What the conservatives do from here is going to have a much bigger effect on your blood pressure.
I await the rabbit that the Hindmost is going to pull regarding avoidance of the fiscal cliff. I can't imagine what it is.
ReplyDeleteAnd then, of course, there are those who may wish to continue to espouse the notion that it's the fault of the other side.
Jean
Ideally Jean, all elected officials should always think, what is best for the entire country. It's less a matter of blaming the other side to me then it is a matter of utilitarianism. Both parties have contributed greatly to the demise of the middle class, to deficit spending and to the debt. The president, does not control legislation and does not solve petty turf fights. At the senate and congress level, it is nothing but turf fights and give aways to special interest. I believe nothing will improve this country that does not benefit the middle class. For at least 12 years now, we have done nothing but enrich a select few while indenturing the majority of everyone else. I don't think one needs to be partisan to come to this conclusion.
DeleteAmen Max, amen. As the old white people die off------so will the Republicans as they are now constructed.
DeleteThe things that worry me the most, Obama will get to select 2 more Supreme Court justices. Plus he will push for UN treaties that will weaken our rights not to mention that he and Bernanke could destroy almost all of our wealth via hyper-inflation.
ReplyDeleteThat last one is bothersome, as it is most direct to any of us who try and have tried to sacrifice and save.
DeleteJean
One more USSC justice appointed by B.O. and your 2nd amendment rights are gone. Two more USSC justices and the Constitution is gone along with the few rights we have left. Always remember that the Constitution as it was intended is not important too progressives. They prefer to "interpret" the document to fit their agenda of marxism. Without the 2nd amendment, all other rights are worthless.
Delete"One more USSC justice appointed by B.O. and your 2nd amendment rights are gone. "
DeleteCongratulate yourself and the millions who think like you do for re electing Obama.
I am glad he will get to name two more Justices. His choices so far have been solid and not at all left-leaning in their decisions so far. The fear is unfounded.
DeleteThe hyper inflation possiblilty worries us all.
Good posts here today and perhaps following the hoop la of the election there will be some serious consideration of the "Fiscal Cliff" situation. Does your country really wish to go into recession? I guess that this is the first opportunity for the new look Pres to show what he is made of. Here is a perfect example of the value to both sides of a compromise. Remember the laws to enact this economic change have been passed and it will need both sides to amend them. What will they do? Jean says she has no idea but is worried. LS is concerned about the possibility of loading the Supreme Court to the left and Max can see the middle class carrying the load.
ReplyDeleteIf nothing is done, all three will be correct, if compromise is reached, Congress may confirm a middle of the road justice (they should all be middle of the road, but we live in an imperfect world). If agreement across the isle is possible the cliff can be made a little less steep and the journey a little slower to travel
If compromise is possible there could be value in revisiting Glass Stegal and using a greatly modified version as a basis for new regulations on Wall Street where there remains too much scope for dishonesty and sharp practice... Just a thought from Aussie
Cheers now. I wish to publicly acknowledge Louman who kindly furnished me with updated emails during the count yesterday.
As congress and the President refuse to address not only the coming tax increases but the long term debt it is probably better to let it fall into recession and get it over with. We have been band aiding the problems for years kicking the can down the road.
DeleteThe middle class does not carry the load. The top 10% pay 70% of all Federal Income Taxes. That is not the middle class. The average middle class family of 4 pay 5.6% adjusted gross income in Federal income tax.
The Democratic controlled congress had a chance to re-institute Glass-Stegal however chose to go a different rout of Dodd/Frank.
Change is always difficult. Change without direction is impossible. That has been our last 4 years. It's time for the Republicans and Democrats to come together for the good of the country and pass legislation for the people instead of for the party.
This is the task at hand we shall see who is and who is not up to the task.
Given the power of Wall Street today, it is irrelevant which party is in the majority in congress because the legislation is controlled by wall street and lobbyists. Dodd/Frank was not an entirely bad bill in principle, but was stripped of all teeth to actually accomplish the goal of deleveraging wall street. Glass/Steagall prevented a lot of the leveraging, and while all of us would probably love to see it come back just like it was, I don't think it's possible.
DeleteYou are correct Lou with your tax figures there, but it's easy to take a 10% number, put it next to a 70% number and make people go, "WOW, taxes are way too high". At best, it does not tell a comprehensive picture. When I think about what provides a strong middle class, income is a small piece of the picture. The top ten do pay 70%, but they also earn 43% of all the income. If we look only at the top 5%, they pay 59% of all taxes but earn 32% of all income. That is a staggering amount of money. My belief is that when you concentrate so much money into so few hands, you begin to drain money from the greater economy. The principle of progressive taxation bothers me, it is very unfair. Yet, I have come to believe that if we leave it to the market to determine how best to distribute income, it will create the enormous gap in wealth we have now. Wealth concentration is not a goal of capitalism, but it happens. Hypothetically, it makes tons of sense that competition will keep everyone honest. As we have seen in real life, however, human nature seeks to use influence to shut down competition and repealing Glass/Steagall to allow banks to become gargantuan and buy out their competition is but one example.
Why wouldn't the democrats in 2009/10 reinstate Glass/Steagall instead of punishing the country with Dodd Frank?
DeleteI often question why?
The only answer to taxation is smaller government. we really don't need 100+ military bases. We really don't need a radio free Europe. We really don't need many government programs and agencies. We really don't need a cabinet position for jobs.
What we really need is a dose of reality which we will never get from our bloated government. The only way to reduce taxes is to reduce the size of government.
Lou, I'm not sure Glass-Steagall could be reimplemented at this point, even if there was the political will to do so.
DeleteYou got 5 or 6 banks that are so huge, hold so much of the nation's wealth, and are global in their scope and influence. I can't even imagine the logistical nightmare that it would be to unwind them and break them up into separate commercial and investment entities at this point. Plus you'd probably need government regulators to do it. I can hear the shockwave from every conservative's sphincter clenching up at the same time. The screams of "NATIONALIZATION" would echo thru the heavens.
It's too bad because I find it very difficult to conceptualize that any other regulation short of Glass-Steagall or something like it aimed at policing Wall Street would even be relevant 5 or 10 years hence ...
Obama will not gloat-------he has the weight of the world on his shoulders--------no time for gloating. He will try to work with Congress, and the Republicans who will continue to destroy themselves with their intransigence if they don't compromise.
ReplyDeleteThe second election of O shows the Republicans that they MUST try to get legislation passed-----be proactive in their actions and not just obstructionist. I heard over and over and over in this campaign that Romney said he had a plan but NEVER once made it known. This was said by Republicans themselves.
Good grief Carol. Have you been asleep for the last 2 years. For 2 years the Senate led by the chief obstructionist Harry Reid has blocked virtually all legislation passed by the House. Did he offer to negotiate? No he buried it with the dead.
ReplyDeleteSpeaking of no plan, your leader has no plan other than tax the rich. What ever will he do should he get that done? Golf?
Maybe he could work with Harry on a reasonable budget plan for 2015.
Good grief indeed.
DeleteI almost choked on my coffee, Carol. gee, I wonder why there was not working with 'congress' (read 'republicans')? Could it be because it was in his political interest? I'm shocked.
The gloating bit? Sadly, a week after "GM is alive and bin Laden is dead" we had the not-a-terrorist attack.
And that jerk Reid, and (strong pejorative)Pelosi, so willing to listen to and invite comments and input from the minority party. But The Leader From Behind did hand out 20-page glossies. What choice did he have? Promise four more years?
This comment has been removed by the author.
DeleteNot to mention the attack on the drone over a week ago. Kept pretty quiet or the CIA directors indiscretion.
DeleteAmazing timing for release of goings on, all before the election, but you didn't need to know until after the election.
Harry Reid?
ReplyDeleteHe who called the mere thought of working with Romney, were he to be elected, 'laughable'?
Who could possibly find such an outlook to be obstructionist?
Not the left. Or the MSM.
DeleteJean
"he has the weight of the world on his shoulders"
ReplyDeleteNo deeply imbeded messiah complex adoration there, no sir, move on folks.
It does make you wonder what's next. My prediction is that this great big train will continue to follow the same tracks that started in the 60's. Those tracks have gone down a few minor hills over their course, but the general path has been upward. Eventually, even with us constructing our rickety bridges to try to sustain the upward path, the tracks will have to go down. The path down will be much faster than the one up.
ReplyDelete