Cliff Notes: Great Expectations

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Cliff Notes: Great Expectations

The election may be over, but the real fight over the fiscal cliff is just beginning. Every day we’re taking a step closer to the edge—and potentially closer to sinking back into recession. Public Notice recently sent letters to President Obama and Speaker John Boehner urging them to come together to find responsible spending cuts to replace the sequester.  Now, with the election behind us, the first order of business for President Obama and leaders of both parties to come up with a plan that averts this crisis before Washington drives America off the cliff.

Here’s What They’re Saying…

Washington Post

Obama Faces “Epic Year-End Battle” Over Fiscal Cliff
President Obama returns to Washington from the campaign trail Wednesday to face an epic year-end battle over taxes and spending that could ultimately tame the national debt and advance his ambitions for a second term. The president, who won reelection late Tuesday, must now confront the “fiscal cliff…” (Lori Montgomery and Zachary A. Goldfarb, 11/6/12)

Associated Press

Fiscal Cliff could be the “most urgent economic priority” for the WH
Many U.S. employers are wary of expanding or hiring until that potential crisis is averted. That’s why analysts have said resolving, or at least delaying, the fiscal cliff should be the most urgent economic priority for the White House. (Christopher S.Rugaber and Paul Wiseman, 11/7/12)

 CNN Money

Fiscal Cliff = Slow Motion Train Wreck
The fiscal cliff is the legislative equivalent of a slow-motion train wreck that Congress and President Obama can avoid … but only if they work together. (Jeanne Sahadi, 11/7/12)

LA Times

Fitch Ratings warns of U.S. credit downgrade from fiscal cliff
Fitch Ratings said that there would be “no fiscal honeymoon” for President Obama, warning early Wednesday that the U.S. probably would lose its AAA credit rating if the White House and Congress don’t address looming tax increases, spending cuts and the fast-approaching debt ceiling. (Jim Puzzanghera, 11/7/12)


Obama win has U.S. investors staring at fiscal cliff
U.S. investors will hit trading floors this morning with the same president and the same problems in gridlocked Washington. First up: a looming budget crisis that could send the U.S. economy reeling. (Rodrigo Campos and Steven C. Johnson, 11/7/12)


World Worries as U.S. Fiscal Cliff Looms
International Monetary Fund head Christine Lagarde has previously spoken out about the fiscal cliff. … “[T]here is still that big uncertainly as to how it’s going to be resolved in the short term, but also how will be resolved in the medium term. What is the strategy of the United States when it comes to its debt, when it comes to its deficit. The world doesn’t know and the world wants to know.” (Kevin Voigt, 11/7/12)

Associated Press

Obama Must Deal with the “Fiscal Cliff” before Second Inaugural
Even before Obama gets to his second inaugural on Jan. 20, he must deal with the threatened ‘fiscal cliff.’ … Experts have warned that the economy could tip back into recession without an agreement.” (Nancy Benac and Nedra Pickler, 11/7/12)

Analysis: Both Sides See Mandate, Hard Road Ahead
Obama signaled some of his second-term goals in a recent Des Moines Register interview. The fiscal cliff’s economic threat is so severe, he said, that a congressional compromise is likely. (Charles Babington, 11/7/12)

Uncertainty on Fiscal Cliff Already Taking It’s Toll
Talking to customers, “what we’re hearing is that they’re not hiring, they’re not investing right now,” Greg Lehmkuhl, president of Con-way Freight Inc., said during a Nov. 1 call with analysts. “They’re waiting for some more stability in the political and fiscal policies. Hopefully after the election and with the dealing of the fiscal cliff our customers will feel more confident in investing in their businesses.” (Alex Kowalski, 11/6/12)

US stocks open lower as political uncertainty fades, ‘fiscal cliff’ and Europe return to fore
The election behind them, U.S. investors dumped stocks Wednesday and turned their focus to a world of problems — economically harmful tax increases and spending cuts at home and a deepening recession in Europe. (Associated Press, 11/7/12)


Election Over, Obama, Boehner set to renew fiscal battle
Failure to prevent a dive off the cliff could rattle U.S. markets, and push the U.S. economy into a recession, which could have global implications. How Obama fares with a familiar set of challenges – most notably the Republican-controlled House -could color his second term. (Kim Dixon andThomas Ferraro, 11/7/12) 

Republican Leader Boehner to call for action on “fiscal cliff”
Boehner, the House speaker, will argue that Republicans and Democrats must “take steps together,” a spokesman said in a brief press release. Bipartisan action is needed by the end of December to avert a crush of automatic tax hikes and spending cuts that could deliver a jolting blow to the already struggling U.S. economy. (Thomas Ferraro, 11/7/12) 


Fiscal Cliff: “we have to get a solution”
“We have fiscal cliff coming and we need a bipartisan compromise. The things that have to happen to get a solution have such tight boundaries that it doesn’t matter who is elected.”—George Feiger, chief executive officer of Contango Capital Advisors Inc., who manages $3.5billion (Inyoung Hwang, Whitney Kisling and Nikolaj Gammeltoft, 11/7/12)