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Walt Watson: Some compromise could head off looming cliff

Posted: November 11, 2012 2:00 a.m.
Updated: November 11, 2012 2:00 a.m.
 

Headline seen Nov. 8: “Stock Market Plunges, Is Obama to Blame?”

I spent most of election night monitoring global market news as the election results came in as President Barack Obama seemed to gain a second chance.

I figured I might as well position myself to make some lemonade from the lemons, and in today’s global trading, you don’t need to wait for the NYSE to open.

World markets actually reacted somewhat favorably to the election results, but were depressed by serious recessionary and debt issues.

The yen was down and the Hang Seng and Nikkei were also down. Then came the European markets with currencies trading down and news to me that stalwart Germany is jittering from debt problems.

Bottom line: Obama’s election isn’t necessarily to blame, but certainly has set the market into bearish territory.

Today, everyone realized that the fiscal cliff could be a reality, but even of more concern is the continued fight between the Democratic president and Senate versus the Republican House.

It’s a perfect storm of uncertainty, and that causes market panic, or at least concerns, even from folks like PIMCO’s Bill Gross.

But before selling off and moving to the mountains, there may be some hope for a possible rescue from financial armageddon.

How do we turn Europe and Asia’s problems to our benefit? This is capitalism at its best.

If (and it’s a big “if”) President Obama puts the new EPA regulations on hold, saving coal jobs and creating overseas markets, allows the Keystone pipeline, allowing America to be the leading oil producer and generating thousands of jobs, and puts the required insurance coverage and tax penalties of Obamacare on hold, eliminating employer uncertainty and allowing employers to hire full-time rather than part-time employees, then wouldn’t a compromise tax increase be in everyone’s best interests to address our staggering national debt?

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