Is today's best news the fact that jobless claims were less disappointing than expected? That European economic sentiment is up? Earnings?

Nah... this is it:

What Congress Might do to Defuse the Tax Time Bomb [1]

OK, the article is from today but the news isn't really... it has been becoming an increasingly open secret that even Democrats in Washington realize they can't let the Bush tax cuts expire on January 1st. It now seems only to be a matter of whether they vote to extend those cuts for everyone, or only for everyone making less than $250,000. Read the article above for a good rundown on the politics in play.

My quick read: how big the cuts are depends on when they vote. If a vote to extend Bush's tax cuts comes before November, then only people earning less than $250k will see a benefit; extending those tax cuts on "the wealthy" would be just too confusing and demoralizing to a Democrat base that has been taught to worship at the Church of Tax Cuts Cause Deficits.

It would actually be better if no vote on the issue took place until after the November elections, in a lame duck session of Congress. On the surface, that might go against conventional wisdom that says markets hate uncertainty, but there's a much greater likelihood that those cuts would be extended for everyone during  lame duck session, so it would most definiltey be worth the wait.

And in truth, savvy investors can be certain now: there is no chance the Bush tax cuts will simply be allowed to expire in full on Januaray 1st.

That is very bullish news, indeed.