Over the Fiscal Cliff we Go

The winner these past few days has been the iPath S&P 500 VIX Short Term Futures (VXX), other than that its been a difficult week for equities.  Is the worst yet to come?

As we pointed out today in Volatility: It's what's for dinner the VXX has jumped 18% in the past 5 days.   We told you to buy into the VXX back last Friday, for those that did congratulations. Now we have to worry about credit agencies downgrading the U.S., and if that happens it will be an instant -10% across the Dow Jones, Nasdaq, and S&P 500.  We are entering uncharted territory and its terrible for equities.  

GOP members you are going to have to raise taxes.  Democrats please be sensible and agree to whatever the GOP is willing to do.  Both parties stop embarrassing Americans that voted for you and reconcile your differences before the shit hits the fan.