The market is rightly concerned about the sequester because the President is right. Its bad policy and he’s also right about the original intent. They came up with this lousy idea for the express purpose of putting everyone in a room to find a real solution. Some people choose not to remember this factoid and its selective amnesia. It was never intended to become law. However, the GOP spend all of 2012 concocting their scheme to remove Obama from office they never took the job of negotiating this thing seriously enough. They figured Romney was going to win right up to the last minute and these negotiations would never have to take place. That might be an oversimplification but you can’t tell me it’s not true.
My goal is not to engage you in a political discussion but as your resident social observer and historian is to remind you there are consequences to decisions that were made or not made and those who don’t study history and often condemned to repeat it. This is the history and the consequences of austerity are never good.
Before I go I must remind you of the recent history. In 2011 and at the end of last year negotiations turned very nasty but deals were done in the 11th hour or overtime to save the day. I think the best case scenario is they punt it down the road. Just when everyone thinks there won’t be a deal, they’ll agree to discuss it on a new day. That’s not a prediction as I got away with making a prediction they’d solve the Fiscal Cliff and I’m not making that prediction again. What I am asking you to consider is do you think the President or GOP wants to be responsible for thousands of people losing their jobs next week? The higher probability is they do end up kicking the can down the road, again. Sequestration? I don’t even like how the word sounds.