Now that midterm elections are over, President Barack Obama and Republicans have promised to work together. But how long will the spirit of cooperation last? One of the first big tests will be whether Congress can raise its debt ceiling early next year.
It looks like a ballot measure to legalize marijuana in California has failed. Proposition 19 would have made it legal for adults of drinking age to possess up to 1 ounce of pot, as well as to grow and smoke the drug in private, and would have authorized local governments to tax its sale.
Economic concerns topped Americans' priority lists Tuesday, pushing many to the Republicans, according to exit polls. Most voters say they're dissatisfied with the federal government and disapprove of Congress.
Many are watching to see if voters say yes to Proposition 19, the controversial ballot measure that would legalize marijuana in California. Advocates say it would be a moneymaker. Opponents see nothing but trouble ahead if Prop 19 passes.
The midterm elections and the third year of a president's term in office have historically led to a stock market rally. If history repeats itself, expect stocks to rise about 8.5% in the next three months and again -- more than 10% -- during 2011.
With elections near and joblessness still so high, Congress and even the Fed are chasing short-term solutions that won't really help matters. More finely targeted policies would be effective, but don't expect any until, with luck, after Nov. 2.
