Political risks to markets are often way overstated by people pushing an agenda but late 2012 will not be one of those times. The two risk the Fiscal Times points out are the expiration of the Bush tax cuts and problems raising the debt ceiling but they might as well be 1. Democrats and 2. Republicans
Both parties are trying to figure out how to play budget and tax issues for maximum political benefit. Unfortunately, to the extent that both parties think they will have better cards to play after the election, it reduces the chances that any kind of deal can be reached beforehand… One thing is sure. Both sides will use the threat of fiscal apocalypse to energize their voters.
