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Susan Jeffries

The only surprising thing here is that it took this long for the fissure in the Republican party to be recognized as a chasm.


If there is no deal at all then expect the markets to explode, up, in the short to medium term. The reason is that the sudden increase in revenue which will show up in tax witholdings the first week and the quick and steady decrease in spending will lower Treasury borrowing needs right away. Back of the envelope numbers show that Treasury borrowing should drop about $50 billion a month. That means $50 a month will have find a home other than Treasury paper and that means stock, or other non Treasury bonds or commodities are likely to catch bids.

With the Fed continuing QE Treasury purchases an outright shortage of Treasury paper is likely so new record low rates are too. So if, big if the cliff is jumped, expect a possible powerful blow off rally in the financial markets.


Are you my broker, Rapier?

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