Speaker Boehner wasn't trying to slow growth down he was trying to speed it up. This is a drastic change from earlier in the year when the GOP did everything they could to derail recovery and point @ Democrats as the cause. Speaker Boehner's mistake was not speaking out about a whole year deal earlier. He should have had the press conference right after finding out the Democrats only wanted to do a 2 month deal because he's right. A longer deal would give more clarity.
I don't expect the kind of bickering we saw in 2011 in 2012. I expect politicians to try and out do each other in ways to generate growth. The GOP's will want to say "see what we did to help the economy?" and the democrats will want to say the same. Thing is, the GOP are masters @ this. I think they go old school GOP on the Democrats asses and the Democrats will try to go old school GOP with them and mask it with Democratic tent.
Power is on the line... And nothing makes a politician more focused.
Add to this the recent ECB bank recapitalization and you have a recipe for a monster rally in risk assets. Many say EU banks will use the money to pay down debt, or buy government debt. I think they'll do a little of both. But 640 billion, thanks to the magic of fractional reserve banking turns into 6.4 trillion. So they'll have some left over for risk. After all they do have to pay the money back in 3 years so they'll have to make money with that money because that's what they do. Some say they'll hoard the cash and that may be the first response, but if so, they'll come around as banks around the world do better and spur competition.
Did you see the $xlf today? If not take a look:
Even with tighter Fed regulation on banks I think shares in banks are so depressed I don't think it'll even matter for now. once they get over valued it'll be a different story but they're far that now.
A note on twitter:
If your not on twitter and you trade or invest in anything your not trying your very best to be successful. Twitter is made for traders. It's as if Biz and Jack said "hey, you know what traders need? A super fast, and simple way to share information with a vast majority of the trader/investor universe." We know that's not how it happen but if you look @ the advantages twitter gives traders could have. If your not on twitter or if you have one but don't use it much I would strongly advise you to dive in. It's awkward @ first but the pro's far far outweigh the cons.
There are geopolitical risks to keep in consideration, namely Iran and the prospect for war but even that dip should be bought as their biggest allies Russia and China are not really in position to go to war. They need growth right now. Russia needs growth the most obviously. My guess is that they'll tell Iran to chill but as we know all too well anything can happen.
Happy holidays traders and have a happy new year!!!