Pelosi: Stock Markets “Trust We Would Not Be So Stupid as to Go Over the Cliff”

Cybercast News Service ^ | December 13, 2012 | Patrick Burke

[Olog-hai]

House Minority Leader Nancy Pelosi (D-Calif.) said what she views as optimistic market data is a sign that investors believe an agreement to avoid the so-called “fiscal cliff” will be reached, that the markets “trust that we would not be so stupid as to go over the cliff.”

At a Capitol Hill press conference on Thursday, Pelosi said, “If we agree that we will have a solution and that we will avoid the cliff—I think we all should agree to that—then what are the steps we need to take and how quickly can we take them, so that we at least have a week of consumer confidence that can improve?” …

[Olog-hai]

Isaiah 3:4 yet again.

[TurboZamboni]

[asinclair]

FTA: "...stock market investors have been taking less risk in recent weeks..."

I think the Broom Hilda is misreading the stock market reactions. The market has been reacting to the situation, but reacting in measured, reasonable ways, using mini-max strategies to improve outcomes no matter what Washington does. Think of all the companies that have accelerated payouts of dividends to get them into calendar 2012 instead of calendar 2013 -- investors win either way. Ditto the profit-takers who want to have positive capital gains posted for 2012 and negative capital gains posted for 2013. Again, if Washington doesn't go over the cliff, the harm is minimal; if Washington does go over the cliff, the investor is in a better position tax-wise.

And most of that protective positive-gain action has already been taken by smart investors.

For those investors who take a longer view, they are standing pat, because the tax modifications done in the short term have little effect on them. They can get out when the taxes go back down. Or, if they see a loss, it's to their advantage to sell in high-tax times.

Maybe Lil Nancy is feeling those years, and refuses to look that far in the future.

[Mr. K]

I dont think ANYONE is underestimating your stupidity, Nancy

[Just mythoughts]

Is this the same Nanny the Red Pewlouise that berated George Bush over ‘allowing’ young people to invest their own money in the market instead of relying upon social security??? Commie Nancy needs to figure out which side of the economy she really wants to promote.

[Tzimisce]

Markets are waiting to see which companies get big government hand outs next year.

[wbill]

I think that most of government is stupid enough to do dammed near anything.

They won't go over a cliff out of a sense of desperate self-preservation, not because of any real genius there.

[G Larry]

Hey Nancy!

NOBODY is trusting YOU, to be “...not so stupid as...” ANYTHING!!!

[Venturer]

Who created the cliff and why have they waited a year to act?

Best solution Ican see is to go over it. That way we at least get some cuts.

[tom paine 2]

No Nancy, the stock markets don’t trust dopes like you and your stupidity is priced into the stock market

[DPMD]

Maybe we just have to sign the agreement as soon as possible in order to see what it was that we agreed to.