From hope to hopeless on budget talks
We have to determine where the market can find firm support on a definite lack of real negotiation.
It's going to get old real soon. That's how I am starting to feel about this Washington situation. If neither side is choosing to negotiate in earnest on the fiscal cliff issues, then the market will have to reach a level where everyone has figured out there will be no earnest negotiation, and they aren't selling regardless.
Last week seemed incredibly confusing. On the one hand, there was plenty of talk about how a deal could be reached. I keep thinking about that comment from Goldman Sachs (GS) CEO Lloyd Blankfein in particular -- the one that said the sides were real close. How could he say that if it weren't at all true? Wasn't it based on something? How about all of those CEOs? Don't they make any difference? We thought they did last week.
On the other hand we have the perception that, if Washington was near a deal, something critical broke down -- because the positions got further apart over the weekend.
What happened in those intervening days, when the business leaders were hopeful and when President Obama went to the Pennsylvania toy factory? Did Treasury Secretary Timothy Geithner misjudge things and play too much hardball?
- Also see: 'Mad Money' recap: reasons to worry
I am thinking like this because it is highly unusual to see a situation go from hope to no hope in three days without anything really changing.
I have to tell you that, behind the scenes, the presidents' people are very certain that there will be a deal -- so certain that it's a bit daunting. Maybe that's what the business leaders were imbibing.
To me, the important thing is how quickly the complete transformation was made. This went from last Wednesday's happy belief that a deal will be struck, to a harder line by both sides Friday, to a total collapse by Monday. That last stage was on the heels of a Republican offer that someone would put out only if they wanted to end talks. Sure, I am certain some people thought Monday's Republican gambit had some substance, but to me it was more of the same.
Get that "total collapse" offer into the market. Figure out where there is no hope -- and then the market will have some firmer footing, which is certainly lacking right now.
Jim Cramer is a co-founder of TheStreet and contributes daily market commentary to the financial news network's sites. Follow his trades for Action Alerts PLUS, which Cramer co-manages as a charitable trust and has no positions in stocks mentioned.
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Final consumption sales tax only - no item or person exempt – When a family goes into a grocery store and buys $100 in groceries and the clerk adds $5 for local tax, $7 for county, $15 for state tax, $35 for federal tax and $45 to pay off the federal debt, the crap will come out of the American peoples head about the cost of government.
Then give the American people the right to directly decide what they are willing to buy through government, (by pass congress). Socialism, liberalism, high government spending will end. In 4 years the American people will reduce government spending by 35% and increase the productivity of our tax dollars by 400%.
Final consumption tax would make America made products and services more competitive. Taking taxes off business will bring business, their money and jobs back to America. Also, if the fed were to make the(real) inflation rate between a deflationary .5% and 0% inflation foreign money would move to America and keep interest rates low in a free market.
Barack Obama fared well across the country Tuesday night, winning 332 electoral votes en route to a second term as president. Nowhere did he perform better, however, than in states that place the highest emphasis on education.
Of the 10 most educated states, measured by the percentage of residents over 25 years old who have a bachelor’s degree or higher, Obama swept all 10. Conversely, among the 10 least educated states, Obama lost 9 states.
Here are the 10 most educated states, with those Obama won underlined. The percentage of residents over 25 with a college degree is in parentheses:
Most educated states
Least educated states
West Virginia (18.5%)
New Jersey (35.3%)
New Hampshire (33.4%)
New York (32.9%)
Obama Wins 8 of the Nation’s 10 Wealthiest Counties
Published: Wednesday, 7 Nov 2012 | 10:35 AM ET
In an election that often focused on debates about class warfare, President Barack Obama was favored over multimillionaire businessman Mitt Romney in eight of the nation's10 wealthiest And his margin of victory in all eight counties was greater than that of the national vote, in which Obama was leading by 50 percent to 48 percent with 97 percent of precincts reporting.
The findings are based on a CNBC.com analysis of Census Bureau numbers on average annual household income from 2006-2011 and results from Tuesday's elections.
The 10 richest counties accounted for 1,337,700 votes, or about 1.1 percent of the national popular vote.
In none of the richest counties was the margin of victory wider than in California's Marin County, just north of San Francisco, where the president won by 74 percent to 23 percent, with all precincts reporting. In Marin, the average annual household income is $128,544.
The two richest counties where Romney won were in New Jersey: adjacent Hunterdon and Morris counties in the northern part of the state. Romney won in Morris by 55 percent to 44 percent and in Hunterdon by 59 percent to 40 percent. However, Somerset County, which abuts Hunterdon and Morris, went to Obama by 53 percent to 47 percent.
—By CNBC's Paul Toscano
THE FAIURE OF AMERICA
This is what happens when you have career politcians playing to their base. It has nothing to do with
what's best for the country, but to get re-elected. Term limits are the only answer
Who actually thought it would be different, same President, same parties controlling the house and the senate? Term limits would fix the lack luster lifers and remember, their wallets are getting bigger while the rest of the working stiffs wallets are shrinking!
Wonder when we will get TRUE leadership - from anyone. A blanket tax rate for everyone without loopholes or deductions allowed would be fair for all and a reasonable way to increase incoming $$ to help balance budgets - as long as welfare (created by dems) and other freebees to those who only want a free ride. Somehow Social Security needs to be replenished to from the $$ "borrowed" by the dems.
As suggested below regarding congressional salaries, I also believe that they should pay into Social Security, etc just like the rest of us and have to live on that once they retire - no free lifetime healthcare either.
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