With the so-called fiscal cliff nearly upon us, the markets seem to be nearly indifferent on this last day of trading of 2012. Fact is that whatever risk the nation may face as a result of the potential spending cuts and tax hikes, it's already built-in the market pricing.
So what's all the fuss and hubbub about the fiscal cliff? Nothing more than political games and media hype. Yes, if the cliff isn't fenced in time, there will be some unpleasant repercussions but it won’t be the end of the world. This very much reminds me of the fear and panic gripping many when the US credit rating was lowered a year and a half ago. After a few days, the markets shrug off the news and no one even talks about that anymore.
More likely than not a deal will be reached and the fiscal cliff will be averted. If not, a later deal will most likely retroactively undo many of the critical parts of the sunsetted laws.
Go out and enjoy new year's eve. The Mayan prediction of 2012 apocalypse never came to fruition and this cliff will end up being a forgettable pothole.