Investors are just holding back on equities until there's a little more clarity on how corporate America is holding up following all that indecision regarding the fiscal cliff towards the end of last year.
Richard H. Thaler makes a reasonable point regarding the fiscal wisdom of allowing charitable deductions ("It's Time to Rethink the Charity Deduction Economic Viewew, Dec. 19), but does not address the social roots of this longstanding tax policy.
Regarding the fiscal pact, it is known that the addition of a "growth clause" ("volet de croissance") was unofficially accepted by both sides in early May, although the Germans will stress the need for growth via supply side reforms (ie, "wage market flexibility") rather than fiscal expansion.
The Grand Bargain/Great Betrayal negotiations regarding the "fiscal cliff" are about more than just finding the compromise point between the policies of stimulus and austerity.
Even in talks regarding the "fiscal cliff" Speaker John Boehner (R-Ohio), has made it crystal clear that he will not cooperate with President Obama.
Also, slower job growth is consistent with a number of indicators that slowed in May, along with Europe and fiscal uncertainty regarding the fiscal cliff.
