So Much for “Happy Holidays”

It looks like Grinch ended up stealing Christmas after all.  And instead of a tall creepy looking green guy, the Grinch is showing up in the form of 536 ignorant politicians who refuse to work together.

I had been hoping for a nice quiet end of the year.  Instead, we’re in the middle of the worst last week of the year performance for the market since 1950.  The S&P 500 is off 3.5% in the last 5 sessions thanks entirely to the fact that the American political system has become a mockery.

Anyhow, it looks like over the cliff we go and then the political charade begins again next week.  Fun times.

Cullen Roche

Mr. Roche is the Founder of Orcam Financial Group, LLC. Orcam is a financial services firm offering research, private advisory, institutional consulting and educational services.

More Posts - Website

Follow Me:
TwitterLinkedIn

  • http://www.stableinvesting.com Ryan

    I think I have it figured out… all of our politicians are long 30 year Treasuries. That is the only explanation :)

  • Kafkaesque

    Well…not entirely. Consumer spending data has been lousy, too.

    And don’t forget that the mid-November to mid-December rally was a bit silly in its own way: every positive headline (“Boehner calls negotiations ‘constructive'”) sent the S&P up 10 points, and every negative headline (“Boehner calls meetings ‘frustrating'”) sent the S&P down zero points. IMHO, this is just payback.

    Not that I’m pro-politician, you understand.

  • http://www.concertedaction.com/ Ramanan

    It is starting to look like the Tom and Jerry cartoon when a character walks across a cliff and suddenly realises there is nothing below and falls.

    http://www.englishblog.com/2009/01/cartoon-of-the-day.html#.UNyTT-R32So

    (from 2009)

  • Very Serious Sam

    “536 ignorant politicians who refuse to work together”

    From my (German) point of view, not all them 536. More like 60-80 who hold the USA hostage, in order to enjoy their tea feast.

  • J Dukate

    OMG. You mean we are going to have to start to figure out how to live within our means as opposed to continually promoting imbalanced consumption via governemental policies. What a horrible idea. It truly is the end of the world. – sarcasm.

  • Pierce Inverarity

    hope you enjoy the increase in unemployment of friends and family if they don’t strike a deal within a reasonable timeframe

  • Johnny Evers

    I would guess Dukate wants a deal, just not the deal you want.
    And I would guess that Dukate is not in favor of unemployment, but sees that perpetual deficits and will lead to greater unemployment in the future.

  • Jack Handy

    And the last half of that daily chart is back to near even.

    My Christmas has been wonderful. Sold out of my FAS on Dec 20th for a 14% profit for 4 days. Then sold all my TZA and FAZ at 1pm today.

    Yay Fiscal Cliff Mongering!

  • J Dukate

    2001 = Bush Tax Cuts. Between 2002 and 2007, employment increased by less than 1 percent when the economy was supposed to be expanding. Employment growth barely kept pace with population growth. Between the end of 2001, when the country was in a recession, and the peak of the real estate bubble, er, economic expansion in 2007, the US economy performed worse than at any time since the end of World War II.

    Peirce, if you ran a business and a part of that business was operating ineffieciently for OVER 10 YEARS would you:

    A) Continue to operate the ineffiecient parts as usual.
    B) Remove the innefficient parts to allow for the efficient parts to grow?

    Simple question. Can I get a logical response or do I have to listen to how horrible and stupid idea B would be?

    A)

  • Paul Milenkovic

    When the Germans get the Greek, Spanish, Italian and French situation straightened out, we can talk about the 60-80 elected representatives in the United States of America holding their government hostage . . .

  • http://ghickey g. hickey

    Perfect timing Mr. Roche!

  • JP Ziller

    A benevolent monarchy would be *so* much better.