America survived another Super Bowl weekend and we can all get back to work on Monday. Some people probably have hangovers after watching the big game at their favorite neighborhood pub. I’m sober when I’m blogging but that has no effect on my sarcasm.
Closing tax loopholes is a no-brainer budget fix, says everyone who’s anyone in Washington. That means it’s nothing more than the first card to play in future negotiations. There won’t be many changes in loopholes or deductions if lawmakers agree to tax increases. The best loopholes are for the ultra-rich and the biggest tax increases are meant for the middle class. We’ll find out by the end of the summer just how correct I am.
I may have to withhold sarcasm from this next item. One SEC advisory group recommends the creation of an exchange allowing small businesses to go IPO. Wow. First the JOBS Act, then this idea. I swear to the Almighty Flying Spaghetti Monster, someone in the U.S. government is really determined to make America friendly to business.
Treasury yields are rising. Slowly but surely, the long of the yield curve creeps up as the federal government’s outstanding bonds become a largely short-duration affair. The Fed’s ZIRP target means rates can’t go any lower, so any change upward forces bond prices down. The so-called rebound in the housing market is done once mortgage rates start climbing.
I’ll stop right there for today.