We Could Still Skirt the 'Cliff'

Equity markets suffered a tremor early Friday after House Republicans were unable to pass Speaker Boehner's "Plan B" proposal late Tuesday. This may well shape up as a "TARP moment" -- that is, a wake-up call to Congress, much as when the Troubled Asset Relief Program was forged in 2008. I still expect Congress to at least partially avert the "fiscal cliff" before New Year's.

By "partially" I mean legislation that would at least head off automatic tax-rate hikes and an alternative minimum tax (AMT) hit for 98% or more Americans, but perhaps not to avert the scheduled budget sequester. I broadly foresee or 2-in-3 odds on this -- yet I also continue to predict a 75% likelihood that any such result will be of very limited scope, and will thus disappoint the equity markets. To reiterate, this would result in a continued squabbling over spending in the next two months....764 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

Read the full story and get access to the Real Money Pro trading floor.

There’s no substitute for a trading floor to get great ideas, so Jim Cramer created a better one at Real Money and blogs there exclusively. We then added legendary hedge fund manager, Doug Kass, with his exclusive Daily Diary and best investing ideas. Staffed with more than 4 dozen investing pros, money managers, journalists and analysts, Real Money Pro gives you a flood of opinions, analysis and actionable trading advice found nowhere else, and allows you to interact directly with each expert.

Already a Subscriber? Please login.

Except as otherwise indicated, quotes are delayed. Quotes delayed at least 20 minutes for all exchanges. Market Data provided by Interactive Data. Company fundamental data provided by Morningstar. Earnings and ratings provided by Zacks. Mutual fund data provided by Valueline. ETF data provided by Lipper. Powered and implemented by Interactive Data Managed Solutions.

TheStreet Ratings updates stock ratings daily. However, if no rating change occurs, the data on this page does not update. The data does update after 90 days if no rating change occurs within that time period.

IDC calculates the Market Cap for the basic symbol to include common shares only. Year-to-date mutual fund returns are calculated on a monthly basis by Value Line and posted mid-month.