The "fiscal cliff," a metaphor drawn from nature, was actually created by members of the U.S. Congress, who designed it to be so horrible that they and the president would come to their senses and avert it in the nick of time.
That time is now with the start this week of a lame-duck session of Congress. But it is not at all certain that Republicans and Democrats are ready to make the compromises necessary to undo the trap they set in August 2011.
With all the time available since then, optimists assumed that Congress and President Barack Obama would return after last week's elections with a plan - perhaps a temporary fix - to avoid the $600 billion in tax increases and budget cuts set to start in January that threaten to throw the economy back into recession.
But they didn't.
Some also assumed the election would give one party or the other an edge that could break the impasse over how to reduce the nation's deficit.
It didn't.
Both sides say publicly and privately that they have the advantage - and a mandate from voters to do things their way. It remains to be seen whether such assertions are just opening moves.
Once again, optimists assume the parties will rescue themselves - and the country - from the crisis they created.
But confidence is low, which is one reason global markets tumbled last week.
Read more: http://www.reuters.com/article/2012/11/11/us-usa-fiscal-congress-idUSBRE8AA02620121111
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