Super Committee-A Thought

Today's first post may seem kind of silly given the apparent failure of the super committee to come to a deal over the weekend.  Let's just put a few thoughts in on that.

1.  Deadline is Wednesday.  Also deadlines can be usually be extended.  In fairness there may be something in the legislation that originally set up the committee that precludes that.  I haven't looked.  

2.  Automatic cuts of 1.2 trillion set in in 2013 if the committee does nothing.  These cuts are so draconian that it is likely that some kind of deal will be crafted later on.

3.  The best thing might be for political deadlock to set in and have Congress do nothing.  Washington Post columnist E.J. Dionne calculates how a Congress that sets on its hands could save over 7 trillion dollars in the next decade simply by doing nothing.

4.  Things are pretty gloomy and investor sentiment is beyond poor.  Yet stocks are cheap.  Investor sentiment strikes me as in the necessary stage that often sets up a rally.

We'll see how the rest of the week plays out.  I will say that at this point it looks like the super committee is done and I'd say that the blame will be marginally cast more towards the Republicans than the Democrats.  That may be enough to get us some movement at this late date.  We have till Wednesday.