The closer the United States dances up to the fiscal cliff, the more likely a dangerous fall.
New York Times, Aug. 5, "Fearing an Impasse in Congress, Industry Cuts Spending ":
“We’re in economic purgatory,” said Alexander M. Cutler, the chief executive of Eaton, a big Ohio maker of industrial equipment like drive trains and electrical and hydraulic systems. “In the nondefense, nongovernment sectors, that’s where the caution is creeping in. We’re seeing it when we talk to dealers, distributors and users.”
As a consequence, Mr. Cutler lowered Eaton’s projected results for 2012 in late July, adding that he sees particular weakness in the heavy-duty truck market. “I don’t think there’s any question the economy is starting to see an impact from the fiscal cliff,” Mr. Cutler said. He noted that as companies retreat, the effect is multiplied by the impact it has on other sectors, like restaurants and hotels.
Business Insider, taking note of a recent Goldman Sachs report, US Daily: Breaking Down the Fiscal Cliff:
Goldman's Alec Phillips has a new note out on the fiscal cliff, and we'll just save you some time and cut right to the chase. Nothing is going to be addressed until after the election. And then probably most of the cuts and tax hikes will be pushed back, but nobody knows for sure. That being said, there is one really great chart, which shows various possible outcomes, and the impact they would have on GDP.
And from a letter from the Retail Industry Leaders Association (RILA) to President Obama and presumptive Republican presidential nominee Gov. Mitt Romney, signed by Gregg Steinhafel, Target chairman, president and CEO, and Sandra L. Kennedy, RILA president.
As this year’s political debate unfolds, we welcome the attention that has been paid to three issues of critical importance to all Americans: how to create jobs, speed our economic recovery and avert the certain disaster that would befall America if the fiscal cliff is not properly addressed. With that focus in mind, we write to underscore the importance of the retail industry in our economy and the critical role the industry will play in its revitalization. Indeed, the vibrant economy we all seek cannot exist without a robust retail industry.
Topics: Economic Growth.
Motion to proceed to consideration of S. 744, #immigration bill, passes Senate by 84-15. Getting right into amendments.
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