Fiscal cliff averted, but pain still to come
Along with playing with the kids and relaxing over the holiday break, I kept an ear out for what was going on between Congress and the White House.
It was disgusting, to say the least. Very little was accomplished other than finding a compromise to the tax issue. But sequestration was kicked down the road for two months.
It is very unfortunate and disappointing that a more long-term solution couldn’t be hammered out.
Think about all the time, energy and angst that went into that two month delay. Congress could have done that a few months ago, when they passed a continuing resolution that extends funding until March.
With our luck, we’ll probably now have a triple cliff facing us – sequestration, the CR expires and the debt ceiling running out.
In a few days, the new Congress will be seated, and it’ll fall to them to figure something out.
I’m giving up on predictions, but a lot will depend on whether the new Congress has a different personality compared to the old Congress. Will there be more willingness for compromise? That, I don’t know. Many of the same players are still there, so...
If the taxes issue is really solved now, then that removes one bone of contention, and perhaps Congress can hash out a deal on spending.
Based on recent history, we can probably expect any action to come at the last possible moment.
So right now, we have a two-month planning horizon, but that doesn’t really buy you much visibility if you are making million-dollar decisions.
Essentially, we’re in the same spot we were in August or September, and that’s a shame.
Posted by Nick Wakeman on Jan 02, 2013 at 10:39 AM