Inny Meany Miny Moe — What They Say It Just Ain't So!

SEE HERE and HERE and then ask the obvious question. Are we in fact teetering on the edge of a massive sell off as foreign holders of U.S. debt dump it in anticipation of default or are we coming out of a recession so that letting the Bush tax cut lapse (after all it only affects the top two or three percent of tax payers we are assured) won't cause any major slow down in the recovery? I think it is obvious that we have too much debt and that increasing taxes is going to slow down any recovery given that we are actually in a recovery. Wandering around the financial advising world you get a very mixed feeling. Everyone is very very nervous and there really hasn't been much recovery. The market has been traveling sideways in whipsaw fashion and the pundits are all sorting themselves out as they look for the next trend, bull or bear to materialize and stabilize. Meanwhile it's limit your exposure and watch carefully. Sounds almost like the biblical advice to keep your lamps trimmed and have the oil at the ready for you don't know the time or the place when all hell is going to break loose. Well that's not a literal translation. I think the best advice right now is be very careful and don't believe anyone very much.