Monday, October 20, 2014 08:33pm
North Adams, MA now: 48 °   
Send news, tips, press releases and questions to info@iBerkshires.com
The Berkshires online guide to events, news and Berkshire County community information.
SIGN IN | REGISTER NOW   

Home About Archives RSS Feed
@theMarket: Republican Grinch Sinks Markets
By Bill Schmick On: 10:18AM / Sunday December 23, 2012
Important
3
Interesting
3
Funny
3
Awesome
2
Infuriating
2
Ridiculous
2

 

Evidently disappointed that the world didn't end on Friday, the Republican-controlled House took matters into their own hands. Rejecting any compromise at all, the tea party members of the GOP rejected out of hand their own speaker's "Plan B" and then took off until after Christmas.
 
John Boehner, the Republican House speaker, who tried to convince his party to pass a bill raising taxes on those earning over $1 million failed miserably. He then threw the ball back to President Obama and the Democrats, knowing full well that without the Republican-controlled House no compromise can be achieved. The canceled House vote occurred Thursday night. World markets sank in stunned disbelief.
 
Disregarding the majority of American voters as well as the opinion polls against cutting spending, in my opinion, the Republican Party has chosen to dictate to the people what they think is best for you and me. By refusing to compromise, we now understand exactly who these GOP Congressmen represent.
 
Most, if not all of the House of Representatives earn more than enough to be classified as part of the top 2 percent of America's most wealthy citizens. Clearly, there is a high level of self-interest at work in their refusal to compromise. These same Republican tea party members are also beholden to a handful of right-wing billionaires who have financed their campaigns in 2010 and in 2012. The reality is that a small group of radicals have taken this country hostage. What can we do about it, unfortunately, very little, since this same group of dictators was re-elected to the House.
 
Investors who chose to vote for these people and those like them can only blame themselves for what comes next. They may think their party would protect them from a tax hike, but if the Fiscal Cliff isn't resolved before Jan. 1, their taxes will be raised automatically. And at the same time, if we go over the Fiscal Cliff, the markets will decline and the 2 percent (who have the most money invested in the markets) will take a second hit to their wealth. If ever there was a case of Republican voters shooting themselves in the foot, this is it.
 
Color me an optimist, however, because I still believe there is a chance that saner members of the government can prevail, despite the maniacs. There is a chance that what moderates are left in the Republican Party could join forces with the Democrats and still hammer out a compromise. It is a long shot but it could happen.
 
Failing that, we could go over the cliff temporarily and then reinstate the tax cuts for 98 percent of Americans, thereby avoiding another recession. That would also require the same kind of two-party coalitions. I doubt that Speaker Boehner is the man who could engineer that kind of deal on the Republican side. He is up for re-election as the House Speaker on Jan. 3 and at this point the outcome is highly uncertain. I say good riddance to ineptitude.
 
Over the last two years, less legislation was passed in the House and Senate than just about any time in this country's history. Consider that the negotiations to avoid this Fiscal Cliff could have started anytime in the last 12 months but both sides chose to wait until after the elections on Nov. 6. To date, our legislators have spent the last 50-plus days focusing on only this one issue. That is almost 15 percent of the year.
 
There are a multitude of issues facing this country. We cannot afford to spend 15 percent of each year on each issue. After the elections, I had some hope that both parties could meet, agree to disagree and yet compromise for the good of the country. It appears that I was wrong. The same obstructionists responsible for the past two years' dismal record are once again going to dictate to all the people for the next two years. Lucky us!
 
Bill Schmick is registered as an investment adviser representative with Berkshire Money Management. Bill’s forecasts and opinions are purely his own. None of the information presented here should be construed as an endorsement of BMM or a solicitation to become a client of BMM. Direct inquires to Bill at 1-888-232-6072 (toll free) or email him at Bill@afewdollarsmore.com.


2 Comments
     
News Headlines
BArT Students Get Lesson in Chocolate, Child Labor
MBTA Rail Cars to Be Built in Springfield
Trick-or-Treat Hours for Halloween 2014
Hunting Permits Available for Hopkins Forest
BerkshireWorks Plans Events in Honor of Veterans
Adams Civic Club Seeking Broader Membership
Cariddi Hosting Information Forum on Ballot Questions
Lanesborough Committees to Discuss School Funding
Shakespeare & Company Head 'Excited' for Future
McCann Manufacturing Students Tour Pittsfield's Starbase Technologies
Bill Schmick is registered as an investment advisor representative and portfolio manager with Berkshire Money Management (BMM), managing over $200 million for investors in the Berkshires. Bill’s forecasts and opinions are purely his own and do not necessarily represent the views of BMM. None of his commentary is or should be considered investment advice. Anyone seeking individualized investment advice should contact a qualified investment adviser. None of the information presented in this article is intended to be and should not be construed as an endorsement of BMM or a solicitation to become a client of BMM. The reader should not assume that any strategies, or specific investments discussed are employed, bought, sold or held by BMM. Direct your inquiries to Bill at 1-888-232-6072 (toll free) or email him at Bill@afewdollarsmore.com Visit www.afewdollarsmore.com for more of Bill’s insights.

 

 

 



Categories:
@theMarket (147)
Independent Investor (199)
Archives:
October 2014 (4)
October 2013 (3)
September 2014 (5)
August 2014 (7)
July 2014 (2)
June 2014 (6)
May 2014 (9)
April 2014 (8)
March 2014 (6)
February 2014 (6)
January 2014 (7)
December 2013 (8)
November 2013 (7)
Tags:
Stimulus Federal Reserve Deficit Stocks Economy Euro Stock Market Bailout Banks Energy Markets Interest Rates Debt Ceiling Recession Rally Selloff Jobs Europe Taxes Congress Crisis Metals Fiscal Cliff Retirement Europe Election Japan Fed Greece Debt Commodities Housing Currency Pullback Oil
Popular Entries:
The Independent Investor: Understanding the Foreclosure Scandal
The Independent Investor: Don't Fight the Fed
The Independent Investor: Does Cash Mean Currencies?
@theMarket: QE II Supports the Markets
@theMarket: Markets Are Going Higher
The Independent Investor: General Motors — Back to the Future
The Independent Investor: How Will Wall Street II Play on Main Street?
The Independent Investor: Will the Municipal Bond Massacre Continue?
@theMarket: Economy Sputters, Stocks Stutter
The Independent Investor: Why Are Interest Rates Rising?
Recent Entries:
@theMarket: Are We There Yet?
The Independent Investor: Why Is This Recovery Different?
@theMarket: October Starts Off on High Note
The Independent Investor: Money & Divorce — What You Should Know
@theMarket: Wash, Rinse and Repeat
The Independent Investor: Is Wall Street Responsible for Climate Change?
@theMarket: Waiting on the Fed
The Independent Investor: The United States of Scotland?
The Independent Investor: Europe Follows the U.S. lead
@theMarket: What's Up With Bonds?


View All
Football: Franklin Tech vs...
McCann Tech holds on for the win Saturday afternoon. McCann...
Colegrove Park Elementary...
Mayor Richard Alcombright and the City Council were updated...
Boys and Girls Cross Country
Berkshire Chamber Greylock
Boys and Girls Cross Country
The Lenox boys and girls teams both cleaned up on Senior...
Volleyball: St. Joe s vs...
Taconic takes 3 from St. Joseph Tuesday night.
Ramblefest 2014
Adams residents enjoyed entertainment, food, and locally...
Girls Soccer: Hoosac Valley...
The Wahconah girls soccer team on Monday advanced to an...
Berkshire County Classic Golf
Francois Benistand, an exchange student from the south of...
Indashio Fashion Show
Fashion designer Indashio holds his second FAME Festival in...
Football: Pittsfield vs...
Senior quarterback Nick Clayton marched his team 80 yards...
Football: Lee vs Drury
FINAL: Lee Wildcats beat Drury 24 -14.
Football: Taconic vs Hoosac...
FINAL: Hoosac Valley 51-14 over Taconic.
Soccer: Mount Greylock vs...
Eric Hirsch scored twice, and Taylor Carlough played strong...
Girls Soccer: Wahconah vs...
The Mount Greylock girls soccer team is still in search of...
Boys and Girls Cross Country
Hoosac Valley's Travis Ciempa and Mount Greylock's Margo...
Football: Franklin Tech vs...
McCann Tech holds on for the win Saturday afternoon. McCann...
Colegrove Park Elementary...
Mayor Richard Alcombright and the City Council were updated...
Boys and Girls Cross Country
Berkshire Chamber Greylock
Boys and Girls Cross Country
The Lenox boys and girls teams both cleaned up on Senior...
| Home | A & E | Business | Community News | Dining | Real Estate | Schools | Sports & Outdoors | Berkshires Weather | Weddings
Advertise | Recommend This Page | Help Contact Us | Privacy Policy| User Agreement
iBerkshires.com is owned and operated by: Boxcar Media 102 Main Street, North Adams, MA 01247 -- T. 413-663-3384 F.413-664-4251
© 2000 Boxcar Media LLC - All rights reserved