Economists warn that failing to avoid the fiscal cliff could spark recession, and stocks opened lower Monday amid no sign of the Washington impasse ending.
CNN: Down to the fiscal cliff wire, with no solution in sight
Despite the speculative doom and gloom, economists believe a fiscal cliff-spurred recession would not spark the kind of home price-hemorrhaging witnessed when the housing bubble burst five years ago.
Compounding the fiscal cliff threatening renewed recession in the short term is the even bigger issue of the long term fiscal and sovereign debt crisis, threatening long term stagnation and decline.
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Economists warn that failure to avoid the fiscal cliff could bring a recession, and stocks have been down since the middle of last week, when apparent progress in the talks suddenly unraveled with Boehner proposing his own "Plan B" that was rejected by fellow House Republicans.
U.S. investors are also buyers, focused in part on the European issues but even more-so on the fiscal cliff and potential for another recession, Brooks continued.
America's reckless politicians may still take the country over the cliff into an uncertain land where recession looms.
Some may be the predictions of the Congressional Budget Office and others that tumbling off the cliff will throw the economy into recession, or the evident nervousness of financial markets.
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No doubt the last couple of months of concern over the U.S. going over the fiscal cliff, thereby potentially triggering a recession, has marketers spooked about committing too much when it looks like consumer spending could follow national finances off the cliff.
If the austerity-lite in place after the fiscal cliff deal tips the US into a recession, as it well might, President Obama and congressional Democrats will come to rue the payroll tax hike.
This would suggest that consumers are rolling with the punches headed to the stores despite the dire talk surrounding the fiscal cliff (and the possibility of a recession in the first half of 2013) and reinforce other economic data that suggests consumer strength.
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Alter Ego: But the CBO says that going over the cliff will send the economy back into a recession.
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The Congressional Budget Office forecasts that plunging over the cliff would likely thrust us back into a recession, albeit briefly.
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Barring a complete crack up of the eurozone, a China hard landing, and a U.S. recession due to failure in the fiscal cliff talks, oil will likely be another boring commodity in 2013.
Crude oil is back on the rise in the face of slowing demand, a possible breakup of the European Union, and the threat of the fiscal cliff sending the U.S. back into recession.
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Indeed, the leader of the free world has a little more than a month to stave off the fiscal cliff, which would plunge the economy into another recession, economists predict: It would result in higher taxes on the entire population and drastic spending cuts to federal agencies come Dec. 31.
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As President Bush described it in his just-released book Decision Points, credit markets had seized up, panic was rampant, the financial system was on the brink of collapse, and an already severe recession threatened to drop the economy off a cliff into another Great Depression.
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Going over the fiscal cliff, though, would reverse those gains, with a recession lowering tax revenues and putting pressure on budgets, all while seeing their federal contributions dwindle.
So I wanted to ask you about the report yesterday from the CBO about the fiscal cliff, which said that Americans should expect a significant recession and 2 million job losses if the spending cuts and tax hikes go through.
Japanese exports have fallen off a cliff, with the export-reliant economy mired in the biggest recession since World War II.
When forecasters struggle to know if we're heading for a triple dip of recession, and the risk of falling off a fiscal cliff next month, a much more distant horizon has been scanned this week.
Economists have forecast that if the fiscal cliff occurs, it could push the U.S. into a recession.
C. to arrive at an immediate compromise on the fiscal cliff, the series of tax increases and spending cuts that would trigger a recession next year.
Going over the fiscal cliff could knock enough points off the growth rate to drive America into a recession, predicts the Congressional Budget Office, a non-partisan body that analyses the economic effects of federal laws.
One scenario, for instance, is to go over the cliff, which would be bearish for gold, as the US economy slides into recession.
The U.S. would slide into recession next year and unemployment would rapidly increase without a compromise on the fiscal cliff.
You might think that the men leading the U.S. financial system might have an idea or two (or three) about what to do about the fiscal cliff, that series of tax hikes and spending cuts that threatens to hurtle the economy into recession.
The fiscal cliff would cause worries about the economy, which could put the U.S. back into recession, Melek said.
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We cannot afford a stalemate on the fiscal cliff, because it would reduce economic activity by 3-5% in 2013 and trigger another recession with higher unemployment.
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In 2012, stock prices rallied despite headwinds of anemic economic growth, high joblessness, recession in the euro zone, and worries over U.S. public finances and the fiscal cliff.
Politicians face a eleventh-hour effort to fix the fiscal cliff, a series of tax increases and spending cuts that could push the U.S. into a recession next year.
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