Analysis: Stop-gap fix most likely outcome of "fiscal cliff" talks

Comments (13)
susette wrote:

It would seem this is the grand scheme of the GOP: stop gap measures have been a trend since Bush started this stimulus thing. The in 2011 the Congress stalled over it and ended up with short term fixes again; and again and again.

Dec 23, 2012 9:24am EST  --  Report as abuse
Samrch wrote:

A stop gap until unemployment levels are low is good monetary policy. You do do not want to cut demand during high unemployment. Raising taxes or cutting benefits will cut demand. There is more need for social programs during high unemployment.

This is not the time to worry about bond holders.

Dec 23, 2012 12:14pm EST  --  Report as abuse
TheNewWorld wrote:

@Samrch

What if 7% unemployment is the new norm? How long, and how far into debt do you push the United States to avoid economic reality?

Dec 23, 2012 1:51pm EST  --  Report as abuse

Is the Tea Party really going to hold the good faith and credit of the US hostage unless it gets its way. The last time they did that the S&P lowered our credit rating.

Dec 23, 2012 6:12pm EST  --  Report as abuse
TheNewWorld wrote:

@Leftcoastrocky

The S&P lowered our credit rating because we are doing nothing to address are out of control deficit spending. We are getting into very dangerous territory. The Tea Party had nothing to do with that since they didn’t exist when the Democrats and George W. Bush went nuts on spending 2006-2008 and then continued it in 2008-2010 with Democrats at the helm of everything. Now the Republicans and Tea Party are left to pick up the pieces with a Democrat President and Senate that refuses to do anything that would cut spending.

Dec 23, 2012 10:02pm EST  --  Report as abuse
xyz2055 wrote:

TheNewWorld…you are a funny guy. But nice try at trying to rewrite history. The spending between 2006-2008 can’t hold a candle to 2000 to 2006. Please detail the NEW spending bills signed into law since 2006 compared to the following 2000-2006 spending by the Republicans: Bush era tax cuts (unfunded), Medicare Prescription Drug Plan (unfunded), 2005 Energy Policy Act that gave billions to Big Oil in subsidies (unfunded) and the Iraq and Afghanistan wars (unfunded). The only major NEW spending since 2006 has been TARP and Bailouts. Of which the U.S. Government has recovered the majority of that money. In 2000 when Bush and The Republicans took control of the government we had an $18B annual deficit and a $5T debt. When Obama took office in 2009, we had an annual deficit of greater than $1T and more than $11T in debt, and you are blaming it entirely on the two years that the Democrats held Congress when GW was president….You are in some kind of denial like the world has never seen.

Dec 24, 2012 8:10am EST  --  Report as abuse
xyz2055 wrote:

TheNewWorld…Please share with us the spending cuts (specifics please) that the Republicans and the Tea Party have proposed. In 2012, the Republican House of Representatives voted for and passed Paul Ryan’s “Path to Prosperity” version 3.0 2013 as their Budget for 2013. You really need to read this document. Because here’s what the “poor” Republicans (and their Tea Party counterparts) are proposing. More Tax Cuts that disproportionately favor the richest, INCREASED Defense Spending and ALL cuts essentially coming from Medicare and Medicaid. Paul Ryan (in Path to Prosperity) makes the insane argument (when we have $1T deficits) that we just aren’t spending enough on Defense based on a percent of GDP. No specific area for the increased money. Just give more money to the Pentagon.

Dec 24, 2012 8:45am EST  --  Report as abuse
xyz2055 wrote:

TheNewWorld…I left out the Depatment of Homeland Security. Created on November 25th 2002. Today it employees 240,000 people and has an annual budget of $60.4B. TARP (created while Bush was president) and the Bailouts were 1 time events..the DHS is FOREVER! Try and get rid of that albatross.

Dec 24, 2012 8:57am EST  --  Report as abuse
TheBushYears wrote:

The fiscal cliff will preserve our credit rating by lowering the deficit and actually getting some revenue generation. There will be no stop gap. This is just happy thinking of traders and investors who don’t want to address our fiscal woes.

Dec 24, 2012 11:56am EST  --  Report as abuse
xyz2055 wrote:

TheBushYears…I agree!

Dec 24, 2012 1:41pm EST  --  Report as abuse
pbgd wrote:

Perhaps the cliff now isn’t quite as dangerous any more as it seemed during the crisis when Bernanke coined this phrase. In November 2012 the economy grew an astonishing 3.1%, and housing grew by an even more surprising 10% annualized. Employment has a bit improved as well.

Dec 24, 2012 3:43pm EST  --  Report as abuse
xyz2055 wrote:

pdgd…throw in robust car sales, a huge black Friday and malls across the country filled with shoppers. The segment poised to lose the most in the Fiscal Cliff are the 2%.

Dec 24, 2012 5:15pm EST  --  Report as abuse
Ghostshark wrote:

The GOP needs to clean out its cupboards and evaluate its friends, cut its losses and start again. They attract the numbnuts from all walks of life, but none more influencial than Rupert Murdoch who tried to buy the last Presidential election.

http://www.guardian.co.uk/commentisfree/2012/dec/20/bernstein-murdoch-ailes-petreaus-presidency

Dec 26, 2012 6:18am EST  --  Report as abuse
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