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Washington is winding down for the holidays without a plan to prevent New Year tax increases and spending cuts that could send the U.S. into recession.
World markets reacted accordingly on Friday. Stocks fell, the euro was weaker and oil prices were off as investors sought safe haven assets such as the dollar and gold and took some profits after recent gains fueled in part by hopes of a deal between President Obama and Congress.
But the failure of House Speaker John Boehner to muster enough support among his Republican members for a "Plan B", including tax hikes for those earning over $1 million a year, was linked by financial market players to the doomsday Mayan prophesy that the world would end on Friday.
Japanese bank Nomura said the probability of a deal before January had fallen but it still saw a 50:50 chance, provided Obama and Boehner get back to the negotiating table quickly. Without agreement, it predicted a "strong negative market reaction" well into January.
"The world hasn't ended but hopes for a deal to avert the U.S. fiscal cliff before the year-end certainly have," said ETX Capital strategist Ishaq Siddiqi in London. "We could get an 11th hour deal, but it seems unlikely now with markets expecting U.S. lawmakers to address the issue in January."
"America's government chose not to govern yesterday," wrote U.S. historian Tim Stanley in a commentary published by British newspaper the Daily Telegraph. "Aside from being very bad news for America's economy, this is a disaster for Republicans."
Germany's Die Welt newspaper said Boehner emerged the most damaged from Thursday's debacle but said it contained hidden dangers for Obama. "A Pyrrhic victory for President Obama, a serious embarrassment for the Republican John Boehner and new uncertainty for all Americans about whether the dive off the fiscal cliff can even be avoided: this is the dismal end result of the failure of Boehner's Plan B," the paper wrote.
Originally posted by TheTardis
I like how this is all the republicans fault though when you have a president basically saying its my way or the highway and refuses to even talk about options. He would rather take start taxing the crap out of people rather than maybe just stop spending so much money. Hey but at least were helping China with their green energy projects. Dont be so naive to think this is just a problem with those pesky republicans.. Why are people so un willing to open their eyes and realize that the guy sitting in the oval office is the biggest problem this country has ever seen.
Originally posted by seeker1963
reply to post by spangledbanner
So it is just the Republicans fault aye? Obviously you are buying into the "political theater" and the fact that both parties have no intentions of setting things right in this country!
Originally posted by spinalremain
Reply to post by DrNotforhire
I can tell you that the GOP is solely responsible for the innovation of the Wonder Bra. Complete w/ a partisan link and all. That still doesn't make it true.
Posted Via ATS Mobile: m.abovetopsecret.com
Wonderbra may have been invented in the USA by Israel Pilot in the '30s, but Canada's Moe Nadler built the brand name.
Originally posted by spinalremain
Reply to post by DrNotforhire
I can tell you that the GOP is solely responsible for the innovation of the Wonder Bra. Complete w/ a partisan link and all. That still doesn't make it true.
Posted Via ATS Mobile: m.abovetopsecret.com
The findings, which were publicised in an unusually narrow report on Wednesday but follow months of discussion, are seen as a victory for a bloc of “middle income” developing countries, particularly China,
That system has been upended in the aftermath of the 2008-09 financial meltdown, however, and some key IMF tenets have increasingly been called into question, particularly by fast-rising economies such as Brazil, China, India and others.