Stocks laugh at sequestration
Budget cuts come, Wall Street yawns (even as unemployment remains high)
As I reported last week, Amerca yawns at sequestration. The Administration oversold the "catastrophe," as proven by the Money Boys on Wall Street.
Here's CNN's flash alert:
"The Dow hit a new record high today, topping 14,264. The previous record was 14,198.10, set in October 2007, when investors were squarely focused on the Federal Reserve. The Fed had cut rates for the first time in four years and was worried the housing implosion would hit consumers and the broader economy.
Today, the Fed's actions have juiced stocks and helped boost the economy, but the recovery after the 2008 financial crisis remains slow-going.
Investors appear to have shrugged off the fight over $85 billion in forced government spending cuts. The Obama administration has started making the cuts and some federal workers are getting furlough notices."
Eventually the cuts will bite, but I'm predicting, without another choice, Democrats and Republicans will put on their Big Boy pants before the pain gets too severe.
Of course, I could be wrong.