Interesting read from Bill Bonner at The Daily Reckoning….
12/09/10 Baltimore, Maryland – The news yesterday was all about the tax deal. Did President Obama drop the ball completely? He was against extending the tax cuts. How come he caved in? Will he alienate his voter base?
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Or did he just pull a fast one on the Republicans? The tax cuts/unemployment benefit extension deal is a kind of “stealth stimulus,” say some commentators. It will stimulate the economy, with no need for another vote on Capitol Hill. The Tea Party people were dead set against any further stimulus. But there it is.
“Obama tax move lifts hopes for growth,” says The Financial Times. It will even eliminate the need for more QE, said one hopeful commentator. The dollar will be stronger as a result.
Stocks went up 13 points on the Dow yesterday – nothing at all, in other words. But gold fell $25.