The "fiscal cliff" deadline came and went without even a bearish whimper from the stock market. Now, the so-called "budget sequester" -- a set of laws that limit federal spending -- was put into effect on March 1. Absolutely nothing negative has happened to the economy -- so far.
The bullish reactions to these events, which may result in long-term, negative overhang on the thriving stock market, have lulled many investors into a false sense of security. These satisfied investors point to the stock market roaring higher, steadily improving economic numbers and to bad news being dismissed as irrelevant as sure signs that the market's surge won't end any time soon.
For the last few weeks, everyone was focused on the impending sequester on March 1st. However once that day came, it seemed like a non-event. There hasn't been much public outcry from what I've seen and both sides seem to be OK with it.
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President Barack Obama is pulling out all the stops to warn just what could happen if automatic budget cuts kick in. Americans are reacting with a collective yawn.
They know the drill: Obama raises the alarm, Democrats and Republicans accuse each other of holding a deal hostage, there's a lot of yelling on cable news, and then finally, when everyone has made their points, a deal is struck and the day is saved.
Maybe not this time. Two days before $85 billion in cuts are set to hit federal programs with all the precision of a wrecking ball, there are no signs that a deal is imminent. Even the White House conceded Wednesday that efforts to avoid the cuts were unlikely to succeed before they kick in on Friday.