[quote=livinincali][quote=poorgradstudent]Seriously though, this sequester fight is truly stupid. If there’s one thing markets hate, it’s uncertainty. There’s clear evidence these constant battles are already dragging down the recovery.
Jack up taxes and slash spending, but set them to kick in in 2016 or whatever. Boom, problem solved.[/quote]
So let me get this straight we’re in 2011 and the market hates the uncertainty of the debt ceiling. I know let’s agree to cut spending at the end of 2012 in exchange for raising the debt limit, boom problem solved. Well we’re here in 2013 and opps that problem isn’t solved, let’s kick the can again. Of course you can see that this never ends unless your willing to take the cut/tax increases when it might not be the best time or wait until it gets worse and the bond market blows up.[/quote]
Seriously I don’t think the problem is solvable anyway so I vote for more can kicking.
BTW, asset deflation is the fastest way to bankrupt local Gov’s and all that entails.
