Industry NewsMarkets & Economy

Fiscal cliff: All tax increases and no spending cuts won’t fly

Commentary: Obama is trying to push the nation further to the left than it lives

Lot goin' on. First the Fed, then the Cliff. The Fed has embarked on QE4, or open-ended, or without end. Whatever. Next year the Fed will buy $1 trillion in Treasurys and mortgage-backed securities (MBS), and continue to buy until enough people are back at work, and stop short only if inflation becomes a problem. The buying is designed to keep long-term rates of all kinds low and borrowing cheap, thereby reviving the economy. Naturally, markets didn't play along. Long-term rates rose after the announcement. Not a lot -- the 10-year T-note above 1.7 percent from lows near 1.58 percent, and mortgages pushing 3.5 percent. There is a logic to the rise. Several logics. First the crowd who from the onset of Fed efforts to save us in 2007 have been certain -- certain -- that inflation would follow, and been totally mistaken. Then the mob that believes QE opens the free-money door to "risk assets" -- stocks, gold and commodities. This is the fourth round of QE, or "quantit...