Thursday, November 29, 2012

US plunge off 'fiscal cliff' is likely, say debt gurus Simpson and Bowles

Fresh from a meeting with President Obama and en route to talk with House Speaker John Boehner, the former co-chairmen of the bipartisan Simpson-Bowles debt commission say it's more likely than not that the United State will fall off the "fiscal cliff" at year's end.
There's only about a one-third possibility that Congress and the White House will reach a deal to avert some $600 billion in automatic tax hikes and mandatory spending cuts over 10 years – an outcome that would be "devastating to the economy," says Erskine Bowles, the Democratic half of the Simpson-Bowles partnership, speaking to reporters at the Monitor breakfast in Washington on Nov. 28.
There's another one-third possibility that "we'll go over the cliff and people will come to their senses in the first week or so," he adds. A third prospect, that a deal takes even longer, "will lead to chaos," he predicts.

Read more: http://www.csmonitor.com/USA/Politics/monitor_breakfast/2012/1128/US-plunge-off-fiscal-cliff-is-likely-say-debt-gurus-Simpson-and-Bowles-video

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