I think after Moodys downgrades our bonds next week...everyone will have a fresh new attitude about these issues. Once you into the business of hustling up bonds....you should have always considered the consequences when you spent too much money.
Keep in mind 1 thing:
They no longer want a tax increase because it is immediate and it is fiscal contraction. Do that to a teetering economy and unemployment will explode further, and that’s that for re-election.
So make no mistake here, this is not and never has been about taxes. It’s about spending, and frankly, a sharp cut to FY2012 spending is ALSO fiscal contraction and will spike unemployment.
It’s beyond salvation.