Fiscal Cliff-Hanger
It came down to the very last minute, but compromise was made and the majority of the fiscal cliff averted. Not surprisingly the markets rallied early on news of the pending compromise. What was surprising was the resilience of the market during weeks of tough negotiations. Those expecting a repeat of the prior year’s debt ceiling debate and market fall were disappointed. With the compromise in place much of the uncertainty over tax policy has been put aside. The Bush tax cut rates have been made permanent for the vast majority of tax payers. Still ahead, a debt ceiling compromise and meaningful tax and spending reform as the fiscal cliff “fix” has added $4.6 Trillion to projected deficits over the coming decade. READ MORE