Fiscal Fail: Government Agencies Plan Few Significant Changes For January, Despite Cliff Hype

Get Politics Alerts:Sign Up React:Important
Funny
Typical
Scary
Outrageous
Amazing
Innovative
Finally
Follow: Fiscal Cliff, Fiscal Cliff IRS, Fiscal Cliff Congress, Fiscal Cliff Federal Agencies, Fiscal Cliff Obama, Fiscal Cliff Outcome, Fiscal Cliff Payroll Tax, Fiscal Cliff Taxes, Fiscal Fail,Politics News #news_entries #ad_sharebox_260x60 img

View the Original article

House Republicans Expected To Vote On Fiscal Cliff Bill Thursday

Get Politics Alerts:Sign Up React:Important
Funny
Typical
Scary
Outrageous
Amazing
Innovative
Finally
Follow:  Eric Cantor,  House Republicans,  John Boehner,  Video, Politics News, Fiscal Cliff, Fiscal Cliff Negotiations, Fiscal Cliff Talks, Fiscal Cliff Vote, Gop Fiscal Cliff, House Republicans Fiscal Cliff, John Boehner Fiscal Cliff, Republicans Fiscal Cliff, Reuters,Politics News #news_entries #ad_sharebox_260x60 img

View the Original article

Fiscal Cliff Agreement Nearing On Capital Gains And Dividends Rate Hikes: Sources

Get Politics Alerts:Sign Up React:Important
Funny
Typical
Scary
Outrageous
Amazing
Innovative
Finally
Follow:  Video, Capital Gains Taxes, Boehner Fiscal Cliff, Capital Gains, Dividends Rates, Fiscal Cliff, Fiscal Cliff Agreement, Fiscal Cliff Deal, Fiscal Cliff Negotiations, John Boehner Fiscal Cliff, Obama Fiscal Cliff,Politics News #news_entries #ad_sharebox_260x60 img

View the Original article

Fiscal Cliff Language Silenced By School Murders As Deadline Looms

House of Representatives Majority Leader Eric Cantor (R-VA) (2nd R) talks to reporters with (L-R) Rep. Cathy McMorris Rodgers (R-WA), Rep. Jaime Herrera Beutler (R-WA) and Rep. Raul Labrador (R-ID) after the House passed the STEM Jobs Act November 30, 2012 in Washington, DC. The act would allow foreign students who graduated from U.S. colleges and universities with degrees in science and technology to obtain green cards to become permanent legal residents. President Barack Obama said he would n Get Politics Alerts:Sign Up Follow:  Congress,  Video, Newtown Elementary School Shooting, School Shooting, Fiscal Cliff, Fiscal Cliff Language, Newtown, Reuters, Sandy Hook Elementary School Shooting,Politics News #news_entries #ad_sharebox_260x60 img

View the Original article

Viewpoint: US fiscal cliff is a false fear for stocks

The US fiscal cliff battle drags on. Taxes will rise on 1 January - investors fear if a deal isn't reached in time, higher taxes will cause a recession and bear market. It's a false fear, and false fears are always bullish.

First, the "fiscal cliff" is fake. Politicians made it; they can move it. The cliff first loomed in 2010 and politicians, fearful of angry constituents, kicked it past 2012 elections. They can do it again past 2014 - same logic. Even if there's no deal by year-end, they can delay implementation, by a month or two or 17. It's up to them! They did it in 2011 - they delayed the payroll tax holiday expiration by two months to buy time to compromise on a longer extension. These deadlines are political, fake, and can be moved.

And they want to compromise - particularly Democrats. They have 20 Senate seats up for election in 2014 and Republicans just 13. And nine of those seats are in vulnerable states which Democrats took from Republicans in 2008. Those seats can easily flip back. Democrats don't want to face voters angry over taxes.

Even if there's no deal and taxes rise, there's a vast history of tax rate moves in the US, UK and globally and no evidence that rate moves - up or down - are predictive for immediate future economic or market direction. No recession I can find was ever caused by a marginal tax increase. I don't like higher taxes, but not because they cause recessions. Provably, they don't.

How do hikes affect stocks?

As for stocks, in the US there have been 27 major income tax rate changes since 1928 - 15 cuts and 12 hikes. (I use the US for its longer data history, but it's the same in the UK and globally.) What did shares do after? Overwhelmingly, no matter whether taxes were cut or hiked, shares rose - 70.4% of the time. After 10 of the cuts, shares were positive 12 months later. Shares fell after just five cuts, which means shares were twice as likely to rise as fall after a tax cut.

That doesn't surprise you. What surprises you is shares were up 12 months following nine tax hikes, but fell after just three hikes, i.e., shares were three times as likely to rise after a tax hike, the opposite of what most think. People automatically assume tax hikes weigh on shares, but history and evidence don't support that. In fact, the reverse!

More amazing are capital gains tax (CGT) moves. Since 1928, there have been six cuts and nine hikes - 87.7% of the time, regardless of CGT rate direction, shares were positive 12 months later. Shares rose, five to one, after CGT cuts, but shares rose eight to one after hikes. Some may view that and form a new myth, believing, perversely, shares like tax increases. No. All it means is shares always and everywhere rise much more than fall over time.

Then, too, tax policy is inherently local and global factors matter much more. Tax rate moves are near meaningless for shares. But the fear is bullish - when expected disaster doesn't arrive, that positive surprise can boost shares, such as pharmaceuticals giant Pfizer (PFE).

Pfizer has a prodigious range of top-notch brand names, and a stream of new products will capture growth from an ageing developed-world demographic, plus new emerging middle classes overseas - all wrapped in a classically cheap stock.

This article is for information and discussion purposes only and does not form a recommendation to invest or otherwise. The value of an investment may fall. The investments referred to in this article may not be suitable for all investors, and if in doubt, an investor should seek advice from a qualified investment adviser.

View the Original article

Republicans Float Fiscal Cliff Fallback Plan As Deadline Looms: Reports

Get Politics Alerts:Sign Up React:Important
Funny
Typical
Scary
Outrageous
Amazing
Innovative
Finally
Follow:  John Boehner,  Mitch McConnell,  Video, Politics News, Fiscal Cliff, Fiscal Cliff Negotiations, Fiscal Cliff Talks, Gop Fiscal Cliff Plan, John Boehner Fiscal Cliff, Mitch Mcconnell Fiscal Cliff, Republican Fiscal Cliff Plan, Republicans Fiscal Cliff Plan,Politics News #news_entries #ad_sharebox_260x60 img

View the Original article

Fiscal Cliff Poll Shows Strong GOP Support For Raising Taxes On Wealthy

Get Politics Alerts:Sign Up React:Important
Funny
Typical
Scary
Outrageous
Amazing
Innovative
Finally
Follow:  Barack Obama ,  Bush Tax Cuts,  John Boehner,  Barack Obama ,  Video, Politics News, Fiscal Cliff, Fiscal Cliff Negotiations, Fiscal Cliff Poll, Fiscal Cliff Talks, Gop Fiscal Cliff, Gop Tax Cuts, Gop Tax Hikes, John Boehner Fiscal Cliff, Obama Fiscal Cliff, Reuters,Politics News #news_entries #ad_sharebox_260x60 img

View the Original article

Obama Fiscal Cliff Deal: President 'Optimistic' On Reaching Agreement

Get Politics Alerts:Sign Up React:Important
Funny
Typical
Scary
Outrageous
Amazing
Innovative
Finally
Follow:  Bush Tax Cuts,  Barack Obama ,  Video, Politics News, Fiscal Cliff Negotiations, Fiscal Cliff Talks, Fiscal Cliff Taxes, Gop Fiscal Cliff, John Boehner Fiscal Cliff, Medicare, Obama Fiscal Cliff, Obama Tax Cuts, Republicans Fiscal Cliff, Tax Cuts,Politics News #news_entries #ad_sharebox_260x60 img

View the Original article

Mitch McConnell Fundraising Off Fiscal Cliff Negotiations

Get Politics Alerts:Sign Up React:Important
Funny
Typical
Scary
Outrageous
Amazing
Innovative
Finally
Follow:  Mitch McConnell,  Video, 2014 Election, Politics News, Ashley Judd Senate Kentucky, Elections 2014, Fiscal Cliff, Fiscal Cliff Negotiations, Fiscal Cliff Talks, Mitch Mcconnell 2014, Mitch Mcconnell Ashley Judd, Mitch Mcconnell Fiscal Cliff,Politics News #news_entries #ad_sharebox_260x60 img

View the Original article

Defense contractors seek fiscal Relief, budget Busting tax breaks Cliff at the same time

U.s. Navy deck crew members stand for a F/A-18 fighter jet on the aircraft carrier USS George Washington. Defense contractors say the fiscal cliff may cost jobs and security at risk. (AP Photo/Kin Cheung) Business Alerts: sign up get react: inspirational
Greedy
Typical
Eng
Scandalous
Amazing
Innovative
Infuriating
Follow: Aerospace fiscal Cliff, Aerospace Industries Association, Boeing, Boeing Defense fiscal fiscal Cliff, Cliff, defence spending, fiscal Cliff, Cliff, United Technologies, defence, tax receiver United Technologies fiscal Cliff, business news

There is probably no group of companies more concerned about is about the "fiscal" Cliff of tax increases and budget cuts due to take effect next month than defense contractors. The cliff is strongly aimed at inflicting pain on the industry, with $ 500 billion in cuts to government defence spending over the next ten years, a process called for "target

View the Original article

Obama remains firmly on ' Fiscal Cliff ' amid Republican disorder

Politics Alerts: sign up get react: important
Funny
Typical
Eng
Scandalous
Amazing
Innovative
Finally,
Follow: Barack Obama, John Boehner, Barack Obama, Video, politics news, Cliff, Cliff, Cliff fiscal fiscal fiscal fiscal negotiations talks, Gop Obama Republicans tax fiscal Cliff, Cliff, Cliff, Reuters, politics news # news_entries # ad_sharebox_260x60 img

View the Original article

Jim DeMint seems determined to John Boehner Agita About fiscal Cliff negotiations

Politics Alerts: sign up get react: important
Funny
Typical
Eng
Scandalous
Amazing
Innovative
Finally,
Follow: Eat The Press, Jim DeMint, John Boehner, Congress, Republicans, taxes, Video, Jim DeMint John Boehner, politics news, fiscal Cliff, John Boehner fiscal Cliff, Reuters, politics news # news_entries # ad_sharebox_260x60 img

View the Original article

James Marshall Crotty: Why Republicans are in the driver's seat on fiscal Cliff negotiations

Barack Obama iPhone app iPad app Android phone app Android tablet app Login Create Account profile settings more notifications Logout # topnav_margin_btm

View the Original article

John Boehner fiscal Cliff conversations: ' We're nowhere ' (VIDEO)

Politics Alerts: sign up get react: important
Funny
Typical
Eng
Scandalous
Amazing
Innovative
Finally,
Follow: John Boehner, Timothy Geithner, Video, Tim Geithner, Boehner fiscal Cliff, Cliff, Cliff, fiscal fiscal fiscal fiscal negotiations Obama, Republicans, politics news Cliff Cliff # news_entries # ad_sharebox_260x60 img

View the Original article

Rush Limbaugh: ' Democrat ' orgasm happens when We go about fiscal Cliff

Politics Alerts: sign up get react: important
Funny
Typical
Eng
Scandalous
Amazing
Innovative
Finally,
Follow: Barack Obama, Rush Limbaugh, Barack Obama, Congress, Barack Obama 2012, Video, Rush Limbaugh, The Rush Limbaugh Show, Democrat orgasm fiscal Cliff, Obama fiscal Cliff, politics news # news_entries # ad_sharebox_260x60 img

View the Original article

Wall St slips on cliff caution, but homebuilders gloss

NEW YORK (Reuters)-u.s. stocks fell on Tuesday as the wrangling continued in Washington over budget talks, while homebuilders stocks outperformed the broader market after positive data.

Strengthening the case for a sustainable rebound in housing construction, single-family home prices rose for an eighth straight month in September. The Semiconductor Sector index housing.HGX advanced 0.5 percent, with all but one of the 19 items gains books.

"As long as you have an interest rate as low as they are now, housing is definitely back," said Brian Amidei, managing director at HighTower Advisors in Palm Desert, California.

Despite strong housing data, an increase of more than the scheduled business expenditure and a 4-year high in consumer sentiment traders were cautious as politicians in Washington made little progress in the treatment of the "fiscal cliff."

Markets have lately focused on whether Congress and the White House can agree on ways to prevent some $ 600 billion in cuts and tax increases the automatic due to kick in early next year.

"If there is any reason why the (stock) market is jammed, it is because large investors have decided to take a step back and see this game, because I think she's very aware of how important this is," said Hugh Johnson, chief investment officer of Hugh Johnson Advisors LLC in Albany, New York.

The Dow Jones industrial average.DJI fell 74.53 points, or 0.57 percent, to 12, 892.84. The S P 500 Index &. SPX dropped 5.68 points, or 0.40 percent, to 1, 400.61. The Nasdaq Composite Index shed 4.80 points, or 0.16 percent, IXIC. to 2, 971.98.

The S P 500 & stopped 1,400, an important psychological level the recovered last week. Last week, got the S & P 500 nearly 4 percent.

As budget negotiations hang, Las Vegas Sands (LVS.N) and Supertex (SUPX.O) added their names to a growing list of companies announcing special dividends aimed at helping investors to avoid a possibly higher tax burden next year.

Las Vegas Sands jumped 5.5 percent to $ 46.46. Supertex rose by 3.4 percent to $ 17.41.

Food maker Ralcorp Holdings (RAH.N) shares rose 26.5% to $ 88.82 after long time freer unknown foods (CAG.N) sealed a deal to buy for $ 5 billion. Unknown acquired shares 4.3 percent to $ 29.50.

Corning Inc. (GLW.N) shares rose 6.7 percent to $ 12.11 after the specialty glass maker said that it expects that the sale of its entire year Gorilla glass, which is used in smartphones and tablets, approach $ 1 billion.

McMoRan exploration co. (MMR.N) shares tumbled 11.8 percent to $ 8.51 per day after the oil and gas industry driller gave a disappointing update on a prospect important gas in a Gulf of Mexico.

(Reporting by Rodrigo Campos; Editibg of Jan Paschal)

. pagination_article

View the Original article

Wall St falls, hit by Reid's ' fiscal cliff ' comments

NEW YORK (Reuters)-u.s. stocks slipped on Tuesday in a choppy session, losing ground in the last hour before the closure after Senate Majority Leader Harry Reid expressed disappointment that there has been "little progress" in dealing with the "fiscal cliff."

The market was strong flat for most of the session, but fell after Reid's comments, a signal that investors remain skittish about the wrangling in Washington. The CBOE volatility Index, or the VIX, jumped on Reid's words.

"It may be that the market feels the goodwill before (last week) Thanksgiving to more political intransigence develops," said Quincy Krosby, market strategist at Prudential Financial in Newark.

"The clock is ticking on Wall Street, with regard to a framework for the (political) consensus," she said.

Markets are focused on whether Congress and the White House can agree on ways to prevent some $ 600 billion in cuts and tax increases the automatic due to kick in early next year.

As budget negotiations hang, Las Vegas Sands (LVS.N) and Supertex (SUPX.O) added their names to a growing list of companies announcing special dividends aimed at helping investors to avoid a possibly higher tax burden next year.

Higher dividend and capital gains taxes are part of the negotiations in Washington and even if a deal be manipulated can be increased.

Las Vegas Sands jumped 5.3 percent to $ 46.36. Supertex rose by 6.9 percent to $ 18.

The S P 500 with 's-& modest losses on Tuesday marked its worst day in eight sessions – give traders are unwilling to aggressively sell if a deal would probably lead to a rally. The benchmark S & P 500 closed again under 1,400, an important psychological level that it had recovered last week as it rose nearly 4 percent.

The VIX.VIX shot up 2.7 percent to 15.92 at closing. Between 2 pm and 3 pm in New York the VIX rose 3.9 percent.

The Dow Jones industrial average.DJI fell 89.24 points, or 0.69 percent, to 12, 878.13 at the end. The S P 500 &. SPX fell 0.52 percent, or 7.35 is points, to end at 1, 398.94. The Nasdaq Composite lost 8.99 points, or 0.30 percent, IXIC. to end at 2, 967.79.

Transactions in Washington strong economic figures, including a darkened increase planned spending and consumer business confidence hitting the highest level in more than four years.

Strengthening the case for a sustainable rebound in housing construction, single-family home prices rose for an eighth straight month in September. Shares of M/I homes (MHO.N) acquired 2.1 percent to $ 22.36. KB Home (KBH.N) added 1.1 percent to $ 14.61.

"As long as you have an interest rate as low as they are now, housing is definitely back," said Brian Amidei, managing director at HighTower Advisors in Palm Desert, California.

In another good sign for consumer demand, Corning Inc. (GLW.N) shares rose 6.9 percent to $ 12.13 after the specialty glass maker said that it expects that the sale of its entire year Gorilla glass, which is used in smartphones and tablets, approach $ 1 billion.

Food maker Ralcorp Holdings (RAH.N) shares rose 26.4% to $ 88.80 after long time freer unknown foods (CAG.N) sealed a deal to buy for $ 5 billion. Unknown acquired shares 4.7 percent to $ 29.63.

McMoRan exploration co. (MMR.N) shares tumbled 15.2 percent to $ indoor per day after the oil and gas industry driller gave a disappointing update on a prospect important gas in a Gulf of Mexico.

Approximately 5.9 billion shares changed hands on the New York Stock Exchange, Nasdaq and NYSE MKT, below the daily average so far this year of about 6.5 billion shares.

On the NYSE, about five issues fell for every four that rose. Six stocks fell on Nasdaq for the five that rose.

(Reporting by Rodrigo Campos; Additional reporting by Caroline Valetkevitch; Edit Jan Paschal)

. pagination_article

View the Original article