ICYMI: Sequester is no fiscal cliff

For three weeks, the president has been detailing the disaster that would come with sequestration, with an endless parade of photo-ops and cabinet secretaries. If you doubt the White House’s full-fledged doom-and-gloom, shame-and-blame offensive, google “Obama” and “sequester:” more than 627 MILLION hits!

The markets didn’t buy it – and that matters. Most surveys show that more than half of America is invested in the stock market. And while down ten or so points from six years ago, it is still a telltale sign of where America is heading.

In the three weeks prior to the fiscal cliff showdown, the Dow dropped 160 basis points: the markets were upset and dropping in value to prove it. In contrast, despite the last three weeks of the White House’s whining, blame-game posturing, and forecasting the impending doom of “Armageddon” the Dow increased by 60 basis points over the same three weeks.

In fact, in the final days prior to sequestration, the Dow hit a five-year high and hovered near an all-time record. And it wasn’t just the “people’s market” that experienced gains; the S&P 500 and the NASDAQ were also up amidst the President’s final week of gnashing.

That’s what happens when the sky falls and doesn’t hit anyone. Instead of girding for blame, Republicans should be taking credit for cutting spending.

Sequester

 

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