On Friday, March 1, $85 billion in “sequestration” or automatic spending cuts to the federal government set in. In the last couple of months, despite expectations, or at least hope, of a deal to address these arbitrary cuts, nothing has been done by Congress and the White House. However, I’m not sure we should be at all surprised by this inaction. It seems this is becoming politics as we know it, because even the markets, typically very sensitive to fear and uncertainty, are shrugging it off and continuing to climb.
Setting the Stage