Courtesy of Mish.
Stocks staged a late day rally because the Senate is prepared to kick the can down the road, avoiding any chance of fiscal sanity this year or next.
Whether or not the House will go along is another matter, but unfortunately Speaker Boehner calls House back to Washington on Sunday
The House of Representatives will reconvene on Sunday evening, just less than 30 hours before the United States reaches the fiscal cliff.
House Speaker John Boehner, R-Ohio, notified lawmakers that the House would come to order at 6:30 p.m. ET on Sunday in hopes of averting the end-of-year combination of tax hikes and spending cuts that constitute the fiscal cliff.
The lawmaker on Thursday’s call told NBC News that any Senate plan Boehner puts on the House floor (of which there is no guarantee) would only receive as few as 40 Republican votes, making Democratic help necessary.
“If the Senate will not approve these bills and send them to the president to be signed into law in their current form, they must be amended and returned to the House,” Boehner told Republicans Thursday, according to a source on the call. “Once this has occurred, the House will then consider whether to accept the bills as amended, or to send them back to the Senate with additional amendments. The House will take this action on whatever the Senate can pass — but the Senate must act.”
Flagpole Rally S&P 500 Futures
The moment I saw that second green candle and volume spike on the S&P 500 futures I knew a deal was in the works even though I could not find any news for a half hour.
Magic Number is 60
MarketWatch reports Senate Republicans open to new cliff deal
Senate Republican Leader Mitch McConnell said late Thursday that Senate Republicans are open to any White House proposal to avert the fiscal cliff.
Reid urged the House to pass a Senate bill extending Bush-era tax cuts for those earning $250,000 a year or less. The Nevada Democrat said the House is being operated under “a dictatorship of the speaker.”
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