Looking over the cliff

29 Nov

Certainly you’ve heard of the looming Fiscal Cliff.

If not, refresh your memory here.

Both sides in Congress are not talking, they are posturing.

Everyone basically is dancing around and not much is getting done.

The real negotiations won’t take place until mid-to-late December.

The reason is simple.

Without a hard deadline, Washington politicians don’t get much done.

What is happening is both sides are moving around the chairs and staking out their positions on what the final deal might look like.

Face-to-face talking is no longer seen as the best way to get a deal.

As the financial markets get the jitters, both sides are locked in a fight to win over key interest groups – and you, the public.

What all this boils down to is the House Republicans don’t have an upper hand in the negotiations, and they’re going to have to grapple with raising tax rates, at least in the short-term.

So the plan now is do nothing and wait for the Democrats to get nervous and be willing to give – just to get a deal done.

As most things the Republicans have tried lately, it won’t work.

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