Why the Fiscal Cliff Is Only One Problem Amongst Many
There are 47 days left in the year, and I’m worried. Not about my holiday shopping, albeit the retailers might be, but about whether President Obama can get Congress to agree to his demand to extend the Bush-era tax cuts, while increasing taxes to the rich, cutting expenses, and avoiding a potential financial crisis.
Based on what has happened since the election on November 6, we are seeing a selling bias toward stocks, as there may be a shift to investors taking their profits now; investors are avoiding what will likely be higher taxes on capital gains and investments going forward in 2013 should the fiscal cliff be allowed to follow through without any modification.
We are at a standstill. A financial crisis may be at stake.