Why There Was No Fiscal Cliff Deal This Week: " . . . It's totally different today. The U.S. bond market hasn't intimidated anyone in more than a decade. If anything, it is begging legislatures to keep borrowing. Someday that will change. Interest rates will rise, markets will protest, and then -- and only then -- will there be comprehensive budget reform. No one knows when that day will come. It could be tomorrow or decades off. When it does, it will likely be the equivalent of weight gain or even heart attack, prompting quick action -- a reality that actually makes me optimistic. Until then, expect more symbolic, short-term budget deals, more bickering, and more fiscal cliffs. There is no incentive for anything else. As Charlie Munger put it: "Never, ever, think about something else when you should be thinking about the power of incentives.""
more news below