Given how this has been proven repeatedly over the past 5 years, with the financial panic and then the debt ceiling crisis, there should no longer be any argument about this.
Junk/ small cap/ weak players outpace quality on recovery and vice-versa when we have issues.

This is already happening. If you see the price of GRT.PR.H is falling steadily while other better quality issues managed to fall relatively less.

Obama will be less willing to bend to their wishes than the last time
I think we will have a deal as long as the house agrees for increasing the tax for folks who make over $500 to $1M. I am not expecting any other major cuts, except some cuts on defense, payroll deductions, etc.

If GOP is smart they can go for a "Grand Bargain", however, I doubt it because there is not enough time and everyone wants to cut a deal before Jan 1st.

I was hoping for a fiscal cliff. Because I am not hoping any major economic impact and it will be addressed eventually. However, it may offer us an opportunity to buy stocks on "bargain".