This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Bring on the Sequester

NEW YORK ( TheStreet) -- I'm now as tired of the word "sequester" as I was of "fiscal cliff" several months ago, when that was the new buzzword. I say, let the sequester begin. It may not be the best or most intelligent way to go about much-needed deficit reduction, but it is what it is.

Twelve of Washington's finest, a.k.a. the "super" committee, could not come to an agreement of how to cut $1.2 trillion over 10 years, and this, sequestration, is the" punishment." It was thought to be so severe, so dreaded, that there was no way the gang of 12, six Republicans and six Democrats, would leave that room until there was an agreement.

But guess what? They gave up. They could not reach an agreement. They kicked it down the road again. But who cared at the time? It was November 2011, and the automatic cuts would not kick in for another 13 months. Plus, there were bigger fish to fry. There was an election on the horizon, then there was this "cliff."

It didn't matter. As part of the American Taxpayer Relief Act of 2012, a.k.a. the great "cliff" diverter, sequestration was put off for another two months. That two-month delay is about up.

Now we are bombarded by the warnings that the sky is falling, that our lives will be ruined if the $85 billion in cuts under sequestration are allowed to go into effect. I say let it happen. For one, it is getting more difficult to believe the politicians and the talking heads as we jump from crisis to crisis and they tell us we must do X or Y will happen. I've stopped believing them. I believe that many other Americans have as well. We are yawning about sequestration. We've had enough.

Part of that is simple crisis fatigue. Part of it is based on the belief that $85 billion in cuts out of a $3.6 trillion budget is a drop in the bucket. Part of it may be some wishful thinking, too. I just don't believe that the sky will begin falling on Friday, and fall harder as more of the cuts kick in. I just don't buy the scare tactics: Cuts in defense, first responders, border patrol agents, teachers, air traffic controllers, etc.
1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
AAPL $93.74 0.00%
FB $117.58 0.00%
GOOG $693.01 0.00%
TSLA $240.76 0.00%
YHOO $36.60 0.00%


Chart of I:DJI
DOW 17,773.64 -57.12 -0.32%
S&P 500 2,065.30 -10.51 -0.51%
NASDAQ 4,775.3580 -29.9330 -0.62%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs