The explosive market rally following the fiscal cliff agreement was based more on what didn't happen than what did. What didn't happen was the implementation of automatic tax increases and spending cuts that would have shaved about 5% off GDP and cause a recession. What did happen was an agreement that would still reduce GDP by about 1.5%, an amount that still looms as significant in light of an economy that is only slogging along at a growth rate of about 2%.
Search for The Difficult Part Is Still Ahead on Bing
Comstock Partners, Business Insider
Fri, 01/04/2013 - 4:15pm
Topics: gdp the treasury department u.s already senator pat toomey pennsylvania we republicans president obama he congress as u.s now state union however u.s furthermore in money game twitter facebook what the the february march august u.s republican republicans we january spending debt happen government market cuts credit limit period increases tax automatic fiscal federal cliff downgrade agreement leadership shutdown paying significant hand based growth lies rally default sequester fight brinksmanship authority negotiations budget uncertainty emerge facing leverage
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