bailey bud wrote: Well - time to agree on the budget........
I think we'll see another deadlock (and the market will respond as it always has).
Anyone else here have an opinion?
I'm of the opinion that with the two houses of congress controlled by opposite parties no candidate is going to be able to secure a pass on the budget in the hopes of buying time until after the election this time around. I'm betting we won't see a continuing resolution passed which allows the current obscene level of federal spending to continue for the next 14 months. If I had to offer a prognostication, I would bet that between now and Christmas the DC government is shut down for a week or two somewhere along the way before Congress and Obama decide that they can get away with promising future Congresses will cut the amount of money they spend so that the current Congress doesn't have to deal with the amount of nonexistent money it is spending one more time.
Under the agreement by all parties back in August, if the supercommittee is unable to agree upon a budget plan, or if President Obama should choose to veto the budget plan, then automatic cuts take place including to defense spending. However, the current level of spending is maintained through the election year 2012, and the cuts do not take place until 2013. The wild card of course is that the newly elected congress in 2013 is not constitutionally bound to that budget plan, so this is all smoke and mirrors so all parties can posture, while the government will continue at it's current level with no threat of a shutdown.
"Remember to always be yourself. Unless you can be batman. Then always be batman." Unknown
