Budget deal sends markets surging, but unresolved questions lurk on deficit and spending cuts

  • Article by: CHRISTINA REXRODE , Associated Press
  • Updated: January 2, 2013 - 5:49 PM

NEW YORK - The "fiscal cliff" compromise, even with all its chaos, controversy and unresolved questions, was enough to ignite the stock market on Wednesday, the first trading day of the new year.

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Wally_99Jan. 2, 13 4:32 PM

(*Sigh*) It's one more artificially produced bubble that will burst because of this absurd "compromise," and because of the Fed's absurd policy of printing more fiat currency (among other things). They should be removed by an act of congress, just like they were created. It's utterly ridiculous.

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theagonybhoJan. 2, 13 5:49 PM

The stock market is rediculous, thats like being 16,000 in debt and you cut nothing from your budget and throw yourself a party after. This house of cards surely will tumble. Why on earth would investors be giddy that we just recouped 10 cents of every dollar spent, cut nothing and we reached our debt limit.

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Truckman182Jan. 2, 13 6:04 PM

The interest on our debt is $4 billion a day, 365 days a year and compounding. Yet these people high five like we are on the right track. Man we are in serious trouble. Like Rome falling kind of trouble....

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ranger78Jan. 2, 13 8:59 PM

It's fools gold. This deal is adding nearly $4 trillion in debt. It's giving us $330 billion in new spending. This deal does nothing to address our red ink. It does nothing to address unsustainable entitlement spending. This entire mess is a house of cards that has to collapse at some point.

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husker1983Jan. 2, 13 9:16 PM

Investing 101: the market reacts to emotion more than fact and is usually priced at anticipated performance.

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alansonJan. 2, 13 9:19 PM

Our government is a giant insurance company uncomfortably managing a behemoth overseas military empire. This arrangement simply can't be sustained. I expect the empire to be cut back substantially during Obama's second term. Better that than allowing the government's debt to overwhelm our citizens.

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comment229Jan. 3, 13 6:57 AM

I scratched my head on this one weeks ago. Wouldn't the stock market investors favor the cliff instead where spending was slashed and taxes to pay off the deficit increased? Instead, we dug the hole deeper. To me, it is backwards. Maybe that is why I got out of the stock market years ago. A bunch of people who gloat when they score big, but whimper about how unfair everything is when they lose big. Arguably, the shallowest people on earth who want a special tax rate. It's wrong.

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