"Ostrich" Congress puts head in the sand and votes for debt increase

[Riot]

Yay! Reaganomics! Trickle down! Make the Job Creators feel safe and secure! Cut the debt! Cut taxes! Cut spending! Who cares if we are in a recession unnamed by about 0.1 percentage point GDP?

And the Democrats signed on to that proven wrong bs. ARG!

As relayed in Daily Kos, from JP Morgan website:

https://mm.jpmorgan.com/stp/t/c.do?i...tml*h_-1ni8eo3

A few quick macro thoughts on the debt deal

4) Impending fiscal drag for 2012 remains intact. The deal does nothing to extend the various stimulus measure which will expire next year: we continue to believe federal fiscal policy will subtract around 1.5%-points from GDP growth in 2012.

Its possible the fiscal commission could do something to extend some measure such as the one-year 2% payroll tax holiday, though we think unlikely, as it would need to be paid for, which would be tough. If anything, the debt deal may add modestly to the fiscal drag we have penciled in for next year.