30 May, 2012

Why they call it a fiscal cliff

The end of this year looks like the proverbial "perfect storm" for government finances: tax cuts expire, the budget deal isn't made, the debt limit is hit, the sequestration hits.  So what does it look like?  Here's the scenarios on GDP growth, courtesy of Goldman-Sach's Alec Phillips:

People are still assuming everything will work out.  Congress can't be THAT stupid, can it?

Isn't that what they said about the earlier debt limit fight?
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Dude said...

My retirement plan assumes that there will never be social security payments made to me, by the time i qualify (in 7 years).

Daniel McIntosh said...

My retirement plan assumes I never retire.