Photo: mckaysavage, Flickr

Welcome back.If you’re just tuning in for the first time since, say, before Christmas, the Fiscal Cliff is solved!

The House late last night passed a bill that will make permanent the Bush tax cuts for most Americans, while those making over $400K will see a hike.

The spending cuts part of the cliff has been delayed for two months to sort things out.

The next two months will be very interesting, since we’re going to see the Fiscal Cliff and the Debt Ceiling come up around the same time.

Markets are all going nuts:

Italy is up over 3.1%.

Spain is up 2.24% (and its bond yields just dropped to its lowest level since March).

Germany up 2%.

Hong Kong rallied nearly 3%.

Happy Wednesday! Happy New Year!

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