The market continued to move sideways today as economic data was less relevant than Bernie Madoff’s thoughts on the CAPM and fund managers don’t want to rock the boat (though they’ll happily tickle the little man inside of it) this close to year end bonuses. This lack of volatility in the market is less surprising than John Boehner crying over a paper cut (or a tax cut) or finding out that old men still want sex (and you really needed to do a study to for that?).
The big news of the day was that the Senate passed the tax cut plan ensuring the “spend and don’t tax” policies of George W. Bush will continue to bankrupt this country for generations to come. It is the Government’s ultimate fuck you to anyone who still believes in the Ricardian equivalence proposition or the mathematical concept of compounding.
The bill extends all of the tax cuts that were enacted in 2001 and 2003 for another two years (until they will be extended again so Wall Street traders who make billions of dollars by hitting a button won’t ever have to downgrade from their daily diet of five unicorn fetuses to only four) and it extends expanded unemployment insurance benefits through 2011 (so the unemployed can eat for another few months while employers tell them their skills have become more obsolete than rotary phones, penny-farthings, and full bush). The compromise will also cut payroll taxes by 2% (which might stimulate hiring if margins weren’t going down like Gayle King at Oprah Winfrey’s house) and will allow businesses to write off 100% of capital investments until 2011 which means executive suites will all soon be redone with neorests, rockstars, and Ashley Dupre. At this rate, Wesley Snipes will be let out of jail early, and not for good behavior, but rather for paying too much in taxes over the past 10 years. But party on, politicians, party on.
via Rich Guys Vote To Extend Tax Cuts For Rich, Laughter Trickles Down to Middle Class | zero hedge