markets down big ==> markets don't wan't deficit reduction after all
contrary to popular wisdom, wall street actually loves deficit spending.
they hate serious inflation, but the kind of serious inflation they worry about hasn't been seen or heard from since volker worked his brutal fed magic in the late carter/early reagan years.
today's deficits don't seem to be producing any worrisome inflation, largely, imho, because it's actually hard to have inflation without a strong labor force, and between high unemployment and weak unions, labor can't push up labor costs, and it's really hard to complete the inflation cycle if price hikes stop at workers' paychecks.
so if deficits don't cause inflation, turns out they feed businesses and help businesses grow and make profits.
so fiscal cliff => deficit reduction => slower growth => less profits => markets down.
*business* like deficits.
it's just their wealthy *owners* who want the deficits reduced.