Forget January – the Fiscal Cliff Effects are Here
U.S. President Barack Obama will hold his first press conference today (Wednesday) since winning re-election and will state his case for a whopping $1.6 trillion in tax hikes to fight the fiscal cliff. Democratic and Republican policy makers returned to Washington, D.C. on Tuesday with just seven weeks left to come up with some sort of compromise. If the two opposing sides fail to reach an agreement and the nation falls off the cliff, a recession in 2013 is guaranteed, the Congressional Budget Office has warned on a number of occasions. Negotiations with congressional leaders will convene Friday. But while Washington takes its time to argue over the fiscal cliff, businesses can't wait any longer. Their impatience was highlighted in recent advertisements by the Business Roundtable, where they tell Congress it's time to act. In one ad, Honeywell International Inc. (NYSE: HON ) Chair and CEO David Cote jumps to the point: "If the last debt ceiling was playing with fire," he asserts, "this time they're playing with nitroglycerin."
U.S. President Barack Obama will hold his first press conference today (Wednesday) since winning re-election and will state his case for a whopping $1.6 trillion in tax hikes to fight the fiscal cliff.
Democratic and Republican policy makers returned to Washington, D.C. on Tuesday with just seven weeks left to come up with some sort of compromise. If the two opposing sides fail to reach an agreement and the nation falls off the cliff, a recession in 2013 is guaranteed, the Congressional Budget Office has warned on a number of occasions.
Negotiations with congressional leaders will convene Friday.
But while Washington takes its time to argue over the fiscal cliff, businesses can't wait any longer.
Their impatience was highlighted in recent advertisements by the Business Roundtable, where they tell Congress it's time to act.
In one ad, Honeywell International Inc. (NYSE: HON) Chair and CEO David Cote jumps to the point: "If the last debt ceiling was playing with fire," he asserts, "this time they're playing with nitroglycerin."
Fiscal Cliff Effects Already Here Companies are urging action because the effects from fiscal cliff anticipation are already being felt, according to Bank of America Corp. (NYSE: BAC) CEO Brian Moynihan Tuesday at an investors conference.
Companies have implemented hiring freezes and scratched expansion efforts. And individuals have become increasingly frugal with their spending habits as they await what could be the biggest ever tax increase on Americans.
"That uncertainty continues to hold back the recovery," CEO Moynihan stressed to his peers and a group of concerned market participants.
According to BofA's survey of chief financial officers, "the number one issue they see is the fiscal cliff."
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Moynihan noted that his bank's clients are holding off making investment decisions until they are afforded more clarity on the situation.
Sharing Moynihan's views is Lloyd C. Blankfein, CEO of investment powerhouse Goldman Sachs Group Inc. (NYSE: GS).
Speaking of the impending fiscal cliff, Blankfein shared the following at Tuesday's conference: "Whether or not it gets resolved-which I believe it will-we're going to have uncertain moments and insecurity between now and then, which will roil the markets. My best guess-it might not turn out this way-but we are at least braced for a ride here."
That's why President Obama is meeting with big business CEOs today to hear their fiscal cliff concerns. Those expected to attend include General Electric Co. (NYSE: GE) CEO Jeffrey Immelt and American Express Co. (NYSE: AXP) CEO Kenneth Chenault.
If U.S. lawmakers can come to terms before Dec. 31, a Santa Claus rally may deliver what is on investors' wish lists. But if no fiscal cliff resolution arrives before the New Year, look for a possibly violent market reaction.
Related Articles and News:
Tags: avoid fiscal cliff effects, fiscal cliff, fiscal cliff 2013, fiscal cliff bargaining, fiscal cliff deal 2013, fiscal cliff definition, fiscal cliff impact on gdp, fiscal cliff sequestration, fiscal cliff stocks to buy, how to stop the fiscal cliff, how will fiscal cliff effect gold, how will fiscal cliff effect stocks and bonds, how will the fiscal cliff affect me, how will the fiscal cliff effect my investments, how will the fiscal cliff impact europe, investing for the fiscal cliff, the fiscal cliff 2013, what caused the fiscal cliff, what is the fiscal cliff, when do we hit fiscal cliff, when is fiscal cliff
Negotiations with congressional leaders will convene Friday.
But while Washington takes its time to argue over the fiscal cliff, businesses can't wait any longer.
Their impatience was highlighted in recent advertisements by the Business Roundtable, where they tell Congress it's time to act.
In one ad, Honeywell International Inc. (NYSE: HON) Chair and CEO David Cote jumps to the point: "If the last debt ceiling was playing with fire," he asserts, "this time they're playing with nitroglycerin."
Fiscal Cliff Effects Already Here Companies are urging action because the effects from fiscal cliff anticipation are already being felt, according to Bank of America Corp. (NYSE: BAC) CEO Brian Moynihan Tuesday at an investors conference.
Companies have implemented hiring freezes and scratched expansion efforts. And individuals have become increasingly frugal with their spending habits as they await what could be the biggest ever tax increase on Americans.
"That uncertainty continues to hold back the recovery," CEO Moynihan stressed to his peers and a group of concerned market participants.
According to BofA's survey of chief financial officers, "the number one issue they see is the fiscal cliff."
Investors:CEOs are preparing, why shouldn't you? Cushion the fiscal cliff pain with this profit play. body #pp-popup-50a3d8e9d30a3 div,body #pp-popup-50a3d8e9d30a3 dl,body #pp-popup-50a3d8e9d30a3 dt,body #pp-popup-50a3d8e9d30a3 dd,body #pp-popup-50a3d8e9d30a3 ul,body #pp-popup-50a3d8e9d30a3 ol,body #pp-popup-50a3d8e9d30a3 li,body #pp-popup-50a3d8e9d30a3 h1,body #pp-popup-50a3d8e9d30a3 h2,body #pp-popup-50a3d8e9d30a3 h3,body #pp-popup-50a3d8e9d30a3 h4,body #pp-popup-50a3d8e9d30a3 h5,body #pp-popup-50a3d8e9d30a3 h6,body #pp-popup-50a3d8e9d30a3 pre,body #pp-popup-50a3d8e9d30a3 code,body #pp-popup-50a3d8e9d30a3 form,body #pp-popup-50a3d8e9d30a3 fieldset,body #pp-popup-50a3d8e9d30a3 legend,body #pp-popup-50a3d8e9d30a3 input,body #pp-popup-50a3d8e9d30a3 textarea,body #pp-popup-50a3d8e9d30a3 p,body #pp-popup-50a3d8e9d30a3 blockquote,body #pp-popup-50a3d8e9d30a3 th,body #pp-popup-50a3d8e9d30a3 td{margin:0;padding:0;line-height:normal;}body #pp-popup-50a3d8e9d30a3 table{border-collapse:collapse;border-spacing:0;}body #pp-popup-50a3d8e9d30a3 fieldset,body #pp-popup-50a3d8e9d30a3 img{border:0;}body #pp-popup-50a3d8e9d30a3 address,body #pp-popup-50a3d8e9d30a3 caption,body #pp-popup-50a3d8e9d30a3 cite,body #pp-popup-50a3d8e9d30a3 code,body #pp-popup-50a3d8e9d30a3 dfn,body #pp-popup-50a3d8e9d30a3 em,body #pp-popup-50a3d8e9d30a3 strong,body #pp-popup-50a3d8e9d30a3 th,body #pp-popup-50a3d8e9d30a3 var{font-style:normal;font-weight:normal;}body #pp-popup-50a3d8e9d30a3 li{list-style:none;}body #pp-popup-50a3d8e9d30a3 caption,body #pp-popup-50a3d8e9d30a3 th{text-align:left;}body #pp-popup-50a3d8e9d30a3 h1,body #pp-popup-50a3d8e9d30a3 h2,body #pp-popup-50a3d8e9d30a3 h3,body #pp-popup-50a3d8e9d30a3 h4,body #pp-popup-50a3d8e9d30a3 h5,body #pp-popup-50a3d8e9d30a3 h6{font-size:100%;font-weight:normal;}body #pp-popup-50a3d8e9d30a3 q:before,body #pp-popup-50a3d8e9d30a3 q:after{content:'';}body #pp-popup-50a3d8e9d30a3 abbr,body #pp-popup-50a3d8e9d30a3 acronym{border:0;font-variant:normal;}body #pp-popup-50a3d8e9d30a3 sup{vertical-align:text-top;}body #pp-popup-50a3d8e9d30a3 sub{vertical-align:text-bottom;}body #pp-popup-50a3d8e9d30a3 input,body #pp-popup-50a3d8e9d30a3 textarea,body #pp-popup-50a3d8e9d30a3 select{font-family:inherit;font-size:inherit;font-weight:inherit;}body #pp-popup-50a3d8e9d30a3 input,body #pp-popup-50a3d8e9d30a3 textarea,body #pp-popup-50a3d8e9d30a3 select{*font-size:100%;}body #pp-popup-50a3d8e9d30a3 legend{color:#000;}body #pp-popup-50a3d8e9d30a3 del,body #pp-popup-50a3d8e9d30a3 ins{text-decoration:none;} body #pp-popup-50a3d8e9d30a3 h1{font-size:138.5%;}body #pp-popup-50a3d8e9d30a3 h2{font-size:123.1%;}body #pp-popup-50a3d8e9d30a3 h3{font-size:108%;}body #pp-popup-50a3d8e9d30a3 h1,body #pp-popup-50a3d8e9d30a3 h2,body #pp-popup-50a3d8e9d30a3 h3{margin:1em 0;}body #pp-popup-50a3d8e9d30a3 h1,body #pp-popup-50a3d8e9d30a3 h2,body #pp-popup-50a3d8e9d30a3 h3,body #pp-popup-50a3d8e9d30a3 h4,body #pp-popup-50a3d8e9d30a3 h5,body #pp-popup-50a3d8e9d30a3 h6,body #pp-popup-50a3d8e9d30a3 strong{font-weight:bold;}body #pp-popup-50a3d8e9d30a3 abbr,body #pp-popup-50a3d8e9d30a3 acronym{border-bottom:1px dotted #000;cursor:help;}body #pp-popup-50a3d8e9d30a3 em{font-style:italic;}body #pp-popup-50a3d8e9d30a3 del{text-decoration:line-through;}body #pp-popup-50a3d8e9d30a3 blockquote,body #pp-popup-50a3d8e9d30a3 ul,ol,body #pp-popup-50a3d8e9d30a3 dl{margin:1em;}body #pp-popup-50a3d8e9d30a3 ol,body #pp-popup-50a3d8e9d30a3 ul,dl{margin-left:2em;}body #pp-popup-50a3d8e9d30a3 ol li{list-style:decimal outside;}body #pp-popup-50a3d8e9d30a3 ul li{list-style:disc outside;}body #pp-popup-50a3d8e9d30a3 dl dd{margin-left:1em;}body #pp-popup-50a3d8e9d30a3 th,body #pp-popup-50a3d8e9d30a3 td{border:1px solid #000;padding:.5em;}body #pp-popup-50a3d8e9d30a3 th{font-weight:bold;text-align:center;}body #pp-popup-50a3d8e9d30a3 caption{margin-bottom:.5em;text-align:center;}p,body #pp-popup-50a3d8e9d30a3 fieldset,table,body #pp-popup-50a3d8e9d30a3 pre{margin-bottom:1em;}body #pp-popup-50a3d8e9d30a3 input[type=text],body #pp-popup-50a3d8e9d30a3 input[type=password],body #pp-popup-50a3d8e9d30a3 textarea{width:12.25em;*width:11.9em;} jPPUI('#pp-link-50a3d8e9d30a3').data('options', {"ID":"70925","options":{"width":"480","height":"280","shadow":false,"background":"#ffffff","noTitle":true,"frameColor":"#aaaaaa","frameSize":0,"borderRadius":"0","closeOnEscape":false,"closeOnOuterClick":false,"closeBtnX":true,"affiliate":false,"modal":true,"overlay":true,"overlayColor":"#2f2727","overlayTransparency":50,"sticky":true,"webroot":"http:\/\/moneymorning.com\/wp-content\/plugins\/platinumpopup","draggable":false,"frameStyle":"solid","closeOnMouseLeave":false,"ID":"50a3d8e9d30a3"},"title":"Gated Content Popups (one liners)","content":"<div id=\"ppopup-50a3d8e9d30a3\" class=\"ppopup\"><div class=\"widget cfox_preload\"><div class=\"cfox_preload_widget\"><\/div><\/div><\/div>"});
Moynihan noted that his bank's clients are holding off making investment decisions until they are afforded more clarity on the situation.
Sharing Moynihan's views is Lloyd C. Blankfein, CEO of investment powerhouse Goldman Sachs Group Inc. (NYSE: GS).
Speaking of the impending fiscal cliff, Blankfein shared the following at Tuesday's conference: "Whether or not it gets resolved-which I believe it will-we're going to have uncertain moments and insecurity between now and then, which will roil the markets. My best guess-it might not turn out this way-but we are at least braced for a ride here."
That's why President Obama is meeting with big business CEOs today to hear their fiscal cliff concerns. Those expected to attend include General Electric Co. (NYSE: GE) CEO Jeffrey Immelt and American Express Co. (NYSE: AXP) CEO Kenneth Chenault.
If U.S. lawmakers can come to terms before Dec. 31, a Santa Claus rally may deliver what is on investors' wish lists. But if no fiscal cliff resolution arrives before the New Year, look for a possibly violent market reaction.
Related Articles and News:
- Money Morning:
- Fiscal Cliff: Both Sides Optimistic, But Still No Real Answers
- Money Morning:
- The Fiscal Cliff is a Mole Hill Compared to This
- Money Morning:
- What's Next for the Fiscal Cliff?
- Fox Business News:
- Fiscal cliff already affecting U.S. economy: BofA CEO
- Time.com:
- Business Leaders Dive into Fiscal-Cliff Debate
- Business Insider:
- Here's Why Republicans Have A Lot More Incentive To Get A Deal On The Fiscal Cliff
- Bloomberg News:
- Here's how the fiscal cliff is already hurting the economy
Tags: avoid fiscal cliff effects, fiscal cliff, fiscal cliff 2013, fiscal cliff bargaining, fiscal cliff deal 2013, fiscal cliff definition, fiscal cliff impact on gdp, fiscal cliff sequestration, fiscal cliff stocks to buy, how to stop the fiscal cliff, how will fiscal cliff effect gold, how will fiscal cliff effect stocks and bonds, how will the fiscal cliff affect me, how will the fiscal cliff effect my investments, how will the fiscal cliff impact europe, investing for the fiscal cliff, the fiscal cliff 2013, what caused the fiscal cliff, what is the fiscal cliff, when do we hit fiscal cliff, when is fiscal cliff