The fact that Speaker Boehner has not taken a dug-in position on fiscal matters in the immediate aftermath of the election is helping give the S&P a bit of a further short-covering boost.
Don’t get too excited folks. They all make nice after the election. There is no guarantee that that spirit will carry over to actual negotiations. Odds are they will not.
I still expect the fiscal cliff to be avoided with a short-term pact to get us into 2013, followed by negotiations in the new year on a more comprehensive fiscal package. The second part of that timeline is much more difficult than the first.
