Fiscal Cliff on the Horizon as Stock Market Sinks After Election
By: Ashley Hinson
Updated: November 7, 2012
"Well I think what the stock market realizes is that we could have four more years of uncertainty," said Congressman Randy Neugebauer. "And so when I talk to businesses, small and large, there's just so much uncertainty out there, it makes it difficult for them to make business decisions and so I think the market today is saying oh my goodness, we may have four more years of this uncertainty."
But not everyone blames President Obama for the stock market's misfortune.
"President Obama and Governor Romney don't really have much to do with the economy," said Financial Advisor Mark Bass. "The economy cycles."
But Wall Street is focused on an even bigger issue: the fiscal cliff. It's the predicted economic disaster that will take place at the end of the year.
"Well there's really two things about to happen on December 31st," said Neugebauer. "One is a tax policy that we currently have is going to expire and so that means tax increase for a number of Americans, for a lot of families $2,000-$3,000. On top of those tax increases, we're also going to see a part of the budget control act where automatic spending cuts will come in place."
And unless Washington comes together to negotiate, the U.S. could be thrown into another recession.
"If Congress does not enact certain provisions, it could have a significant drag on our economy," Bass said.
"If were going to work together, to solve the American people's problems, we're going to have to have everybody at the table, and quite honestly right now, House Republicans are the only ones that have been at the table. Instead of talking about it Mr. President I think what we want to see is for you to step forward and take some leadership."
