Money Morning Headlines
Don’t Look Now, There’s A Fiscal Cliff Ahead
Despite the assurances by President Obama during Monday’s debate, many on Capitol Hill are becoming more concerned as the fiscal cliff nears.
According to the Congressional Budget Office (CBO), a failure to resolve the disagreements would result in unemployment rising above 9 percent and a contraction of the economy in the first half of the year by 2.9 percent.
Economists surveyed by Bloomberg News believe Federal Reserve Chairman Ben Bernanke will continue to confront unemployment with QE3, while conventional on-the-street wisdom remains that the Fed will not make any moves until after the election.
Stock Market Drops After Poor Earnings Reports
On Tuesday, few were surprised that the market responded by dropping 243 points on reports of poor earnings, but how they will respond after November remains a lingering question.
MarketWatch‘s Mark Hulbert says there is no clear indication from history as to how the markets will react after the election.
European Financial Crisis
Attention is often given to Britain’s frigid relations with its European counterparts, but it is the cold war between Germany’s Angela Merkel and France’s Francois Hollande that could hold the European Union back, according to Der Speigel.