America needs to get ready for the politicians to go over the fiscal cliff. That is how things sound as of now at least. It is becoming more and more evident, if not obvious, that both sides are too far apart to reach a deal by the end of this year. After John Boehner sent a deal via a letter on Monday, President Obama gave an interview to Bloomberg Television today regarding the coming fiscal cliff.
The long and short is that there is not really anything new for investors to hang their hat on. Ergo, nothing positive. The president's interview addressed the latest proposal from Republicans. He said it was out of balance and that the Republicans must acknowledge that more taxes have to come on the wealthy. President Obama called accepting a deal on the bottom 98% as a down-payment toward a more comprehensive tax deal in 2013 on the wealthy.
President Obama said that there was no way to expect comprehensive tax reform as a possibility in the short period of time before the year-end's deadline. President Obama did keep the door open for a bipartisan deal but there is nothing new on how or when.
Both sides are too far apart on the coming fiscal cliff. The end result is that tipping over is almost certain to drag a very fragile economy back into recession.
JON C. OGG
Filed under: 24/7 Wall St. Wire, Economy, Politics