No. of Recommendations: 0
The stock market really had nowhere to go but up.
Really? Go back to 2009 and read all the threads about where the market was going to go. The market began its rise after Bernanke came out and guaranted the banks from failing. Companies then cut costs dramatically, raised cash and started to grow their revenues.
Obama didn't impede the process and kept interest rates low, even lowering them more with the payroll tax reduction. That is why the market rose. Even Kudlow would admit that it is all about profits in the end, and this market is nowhere near expensive from a PE point of view.
But now we are stalling and I submit it was intended by the republicans under Norquist. They gridlocked Congress purposefully. They were the ones orchestrating the so called impending fiscal cliff.
Reason why the cuts will come into play is that the republicans stalled raising the national debt limit causing these automatic cuts as a solution to the self-created crisis.
And as for tax hikes. There is a bill stalled that would keep the Bush taxes rates for the bulk of the country. Sign it, boom crisis ended. But the republicans won't because their rich buddies aren't included even though they argue "common ground" which the pending the bill is on.
But I do admit that I want the market to continue rising since hey we are investors in it.
As for inflation, if you leave a $100 tip you are one helluva customer but here's your link:
http://www.google.com/url?sa=t&rct=j&q=inflation%20rate%20us&source=web&cd=4&cad=rja&ved=0CC4QFjAD&url=http%3A%2F%2Fwww.usinflationcalculator.com%2Finflation%2Fhistorical-inflation-rates%2F&ei=GUZ0UPmmJuLi0gH2qIDYCg&usg=AFQjCNGCZGT67io4Pf2eLFgmtgTEiaHtFg