EDMOND —
Unless you’ve been living in a cave somewhere, you no doubt have heard about the impending “fiscal cliff.” Some news programs are actually showing a ticking clock with a countdown to the fiscal cliff in days, hours and minutes. I guess a little drama sells news, but really, is this necessary? As I listen to all this I can’t help thinking of some famous lines from great works of literature.
“It was the best of times, it was the worst of times, it was the age of wisdom, it was the age of foolishness, it was the epoch of belief, it was the epoch of incredulity, it was the season of Light, it was the season of Darkness, it was the spring of hope, it was the winter of despair, we had everything before us, we had nothing before us, we were all going direct to Heaven, we were all going direct the other way — in short, the period was so far like the present period, that some of its noisiest authorities insisted on its being received, for good or for evil, in the superlative degree of comparison only.” — Charles Dickens, “A Tale of Two Cities.”
Or how about a little bit of Shakespeare’s Macbeth:
“Tomorrow, and tomorrow, and tomorrow, creeps in this petty pace from day to day, to the last syllable of recorded time; And all our yesterdays have lighted fools the way to dusty death. Out, out, brief candle! Life’s but a walking shadow, a poor player that struts and frets his hour upon the stage and then is heard no more. It is a tale told by an idiot, full of sound and fury, signifying nothing.”
So what should we make of all this and what will happen? Progress on the negotiations between the Republicans and the Democrats does not seem to be going well and the Dec. 31 deadline is looming. In the absence of some kind of agreement, on Jan. 1 tax rates go back to 2001 levels, defense budget cuts automatically kick in and at least a $600 billion reduction in economic activity will take place in 2013. For an economy that is barely limping along anyway, that almost certainly means recession in 2013.
The apparent lack of progress in the fiscal cliff talks is being described as a farce and a disgrace by some and by others as a poker game where participants are simply not exposing their cards in the early stage of the game.
It’s most definitely not a poker game, a situation where one winner takes it all and the other side loses it all. Neither side in the fiscal cliff talks will feel like the only winner or only loser when a deal is finally hammered out.
Nor is it a hopeless farce being played out by fools who don’t know what they’re doing. There is no group more highly trained and experienced in the art of negotiating than politicians. Legislation can only be passed or amended through negotiations and compromises that result in enough votes from both sides.
The foolish part is that it has taken them so long to address the situation, leaving them so little time to get through the process. The risk is they don’t have time for the normal process and go past the end–of-year deadline, or that one side becomes more desperate for a deal than the other and at the last minute grabs prematurely at the last offer.
A good business deal hammered out in negotiations is considered to be one that does not have a winner and a loser, but one that is fair and acceptable to both sides. And that is certainly what is needed from the fiscal cliff negotiations if both sides are expected to work more closely together for the good of the country for the next few years.
Unfortunately, political leaders on both sides have become so hostage to the extremes of their parties that they won’t risk compromise for fear of the consequences. It’s time for them to become statesmen and do what’s best for the country and not the party. I think that although it appears hopeless, behind the scenes a compromise is developing.
So will we go over the cliff? I don’t think so. I’d like to believe that even Congress isn’t foolish enough to let that happen. In addition, the market is telling us it won’t happen. Last weekend produced the worst-case scenario from the “Fiscal Cliff” front lines — an ultimatum from Treasury Secretary Tim Geithner, followed by finger pointing from both parties blaming the other for the impending economic disaster. News like that would normally send the market down 600 points or so. What did we get? A boring 60 point drop instead.
When a market fails to go down on bad news, something is going on. It leads me to think a deal is brewing. Have you noticed that each violence-threatening comment from politicians in Washington is generating market dips of diminishing magnitude? Nobody in the investment community believes that the fiscal cliff will not get resolved. The problem is being greatly exaggerated by the media, which is now suffering from withdrawal from the circus that had us all glued to our TV screens during the presidential election.
Of course, I don’t know more than anyone else, but my guess is that at the very last minute, late December, they announce a compromise agreement claiming that they saved the economy and they’ll be all smiles and handshakes. It actually will be fairly minor and do nothing to solve the long-term problems. Those will just be postponed again. But the market will love it and spike to the upside because it means the party is back on — for now. By April we’ll be back to talking about the debt ceiling and Europe again. Then we get to repeat the anxiety all over again. We’ll find out soon.
Someday Congress will have to set politics aside and finally deal with the problem. But that day is not likely now. It will finally happen when there is no other choice. In the meantime, buckle up for a wild ride. Thanks for reading.
NICK MASSEY is a financial adviser and president of Householder Group Financial Advisors in Edmond. Massey can be reached at www.nickmassey.com. Securities offered through Securities Service Network Inc., member FINRA/SIPC.
Business
Will we go over the fiscal cliff?
- Business
-
-
Anglin Public Relations hires new account specialist
Anglin Public Relations announces the addition of Bonny Blackmon as account specialist to its Oklahoma City firm.
Blackmon is an Edmond resident and is the daughter of Mike Blackmon and Anita Peterson of Moore.
Blackmon is a graduate of the University of Central Oklahoma where she received her Bachelor of Arts degree in mass communication with a focus in public relations. While at UCO, Blackmon served as a marketing assistant for Housing & Dining and interned at Box Talent in summer 2011. As an account specialist, Blackmon is responsible for the support and implementation of communication tools, events and activities to meet client goals.
Anglin Public Relations specializes in comprehensive public relations for businesses and nonprofit organizations. The firm provides public relations services ranging from strategic planning and image development to community and media relations. -
Public asked to vote on best philanthropists
The Association of Fundraising Professionals will celebrate National Philanthropy Day on Oct. 31 at the Skirvin Hotel in Oklahoma City. AFP is also celebrating 30 years of recognizing philanthropic leadership in Central Oklahoma. They are seeking nominations in one of the following nine categories: Fundraising professional, volunteer fundraiser, corporation, philanthropist, foundation, outstanding philanthropic service organization, outstanding achievement in diversity, outstanding fundraising organization and outstanding youth making a difference. Anyone can vote.
Last year Heidi Russell of Edmond received the Mike McDonald Outstanding Fundraising Professional Award. Paul Folger with KOCO News was the emcee and he presented Russell with the award.
The deadline for nominations is 5 p.m. June 21. Go to http://afpoklahoma.afpnet.org/ to cast votes. -
Local dentist leads national group
Dr. W. Scott Waugh was elected as the president of the American College of Dentists for 2013 as part of the College’s 92nd Annual Meeting and Convocation in San Francisco.
He is the first Oklahoman to be selected and will serve for one year, traveling throughout the United States and visiting other state’s dental associations and dental schools while representing the American Dental College.
Waugh was the recipient of the Oklahoma Dentist of the Year Award in 2009. In addition he has received The Thomas Jefferson Award and Dan Brannin awards from the Oklahoma Dental Association. He has served as president of the Oklahoma Dental Association and Oklahoma County Dental Association. He has practiced family dentistry in Edmond for more than 39 years. -
Purchases by dementia sufferers put stores in quandary
An increasing number of lawsuits have been filed across Japan against department stores that allowed unusual purchases to be made by elderly people with dementia.
-
VIDEO: You won't believe how much Google interns are paid
Many interns work for free. Not at Google.
-
My Small Wonders will double its facility size
Scott and Tammy Werner say they consider it an honor and privilege to partner with parents in the lives of their children.
“The most important thing in anyone’s life is their kids,” Scott Werner said. “So we take that as a huge privilege, but we also take it as a big responsibility and just appreciate the trust.”
The Werners became owners of My Small Wonders Daycare Center in 2011. -
Father-son duo start business in tight economy
A struggling job market affected two men coming from opposite ends of the work force.
A local father-son duo, Jeff Norris and his son, Robert, both experienced layoffs tied to the economy. Jeff had been working for 25 years in management, and Robert couldn’t find a job that remained viable after graduation. -
THE ASTUTE INVESTOR: Are we there yet?
If you’re like me and have raised children, you are probably familiar with piling in the family car and heading off on vacation or a day trip. Invariably, hardly any time has passed at all before the children start asking, “Are we there yet?”
-
RCB Bank plans to give away car to celebrate Edmond expansion
RCB Bank is giving away a car this summer as part of its expansion into Edmond. The prize is a 2012 CNG Honda Civic with navigation and Bluetooth.
Running now through Aug. 31, every time a customer swipes their RCB Bank debit card, they are automatically entered to win. Entry forms are also available at participating Oklahoma City metro area RCB Bank locations. In-branch entries are limited to one per person, per branch, per day. -
Evans & Davis merges with Balentine Law
Evans & Davis law firm recently merged with Balentine Law and the Heritage Law Center. The firms will operate together under the name of Evans & Davis. The firm’s principal location will remain in downtown Edmond, with additional offices in the Highland Park area of Dallas.
- More Business Headlines
-
