Stocks Stall As Reality Sets In

Stocks are stalling because Wall Street is suddenly awakening to the realization of the consequences of this tax tragedy. NO ONE in Washington is cutting the spending! They're just reducing the tax revenues! As a consequence, we're now seeing BOTH lower stocks AND higher interest rates!
1) Moody's warned that the increased budget deficit will lower the credit rating of the US Government.
2) Interest rates rose dramatically on the news, despite the Fed's money-printing and treasury buying lunacy. The borrowing costs will raise the interest rates on both governments and businesses.
3) The greater borrowing costs will partially, or perhaps entirely, offset the tax savings on businesses.
4) Bond markets are spooked and the bond vigilantes are beginning to worry that the US government won't be able to pay its debt. They are demanding more interest to compensate for the higher risk.
5) The additional debt of $900 billion over two years will take a bigger slice of the budget and will require an even higher interest rate to compensate investors for the risk. Taxpayers lose both coming and going!
6) Mortgage rates are leaping higher on the news of all this debt being added to the US government's balance sheet. That will no doubt be a nice boost to the housing market -- HIGHER mortgage interest rates! You bet!