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The 'fiscal cliff' may be a bigger threat than you think, according to BofA Merrill Lynch. The...

  • Friday, October 19, 2012, 7:12 PM ET
    The 'fiscal cliff' may be a bigger threat than you think, according to BofA Merrill Lynch. The looming tax increases and spending cuts could lop off as much as 1% from growth next year, and may send the economy into a deeper recession than many have predicted. Meanwhile, investors appear to remain oblivious. In a recent survey of fund managers, BofA found the market bias is for the "risk-on" trade — with the market rising higher — in spite of the political dangers looming.
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This news story has 30 comments:

  •  
    Been yelling for a while, Buy your PHYSICAL metals while you can....Next year will be something this country has never seen!!
    19 Oct 2012, 07:29 PM Reply Like
  •  
    But they are still selling off now, so better entry points will be available in coming days.
    19 Oct 2012, 08:04 PM Reply Like
  •  
    UI

    Silver seems to have a floor of $32 bucks....Personally not sure what direction it would head if the markets had a 10% correction. Is it worth the risk waiting??
    19 Oct 2012, 08:10 PM Reply Like
  •  
    That is just a bunch of malarchy! If my marginal rate goes up by 5% (2% payroll tax + 3% federal income tax + maybe more in California state tax) you think I (or others) will be able to buy more gold or less? It should be a reason to SELL gold.
    19 Oct 2012, 11:58 PM Reply Like
  •  
    2008: Been yelling for a while, Buy your PHYSICAL metals while you can....Next year will be something this country has never seen!!

    2009: Been yelling for a while, Buy your PHYSICAL metals while you can....Next year will be something this country has never seen!!

    2010: Been yelling for a while, Buy your PHYSICAL metals while you can....Next year will be something this country has never seen!!

    2011: Been yelling for a while, Buy your PHYSICAL metals while you can....Next year will be something this country has never seen!!

    2012: Been yelling for a while, Buy your PHYSICAL metals while you can....Next year will be something this country has never seen!!
    20 Oct 2012, 03:13 AM Reply Like
  •  
    FULL STOP

    One question, how has gold and silver done in all those years? I dare you to pull up a 10 year chart of Gold and show me a more bullish one..

    Some can keep your heads in the sand..It won't go away all this debt...If you bought gold and silver in 2008 you would be very happy right now, i promise you that!

    Are you better off now then you were 4 years ago??
    20 Oct 2012, 12:05 PM Reply Like
  •  
    Also you know that The EU needs to get it act together right? Money Printing and who knows what kind of scheme they will come up with to fool the foolish into thinking they are actually working on a real solution that will work. 4 years they are 1/2 to double as bad or will be if they don't get to work and fast.
    20 Oct 2012, 04:31 PM Reply Like
  •  
    I am a lot better than I was 4 years ago. Are you worse?
    21 Oct 2012, 04:10 AM Reply Like
  •  
    I am also alot better than four years ago as well. My metals saw to that!!Now the big question will be who will be better off in 2013?
    21 Oct 2012, 09:57 AM Reply Like
  •  
    Actually if the tax hikes and spending cuts are put into place metals may go down and the dollar may go up.
    19 Oct 2012, 07:39 PM Reply Like
  •  
    Guardian

    If your scenerio happens, i would think our fiat money might have a problem surviving...Hence the needs for metals...Inflation is here already, Hyperinflation...maybe someday...

    We have to pay a penalty for all of that money printing, and i am afraid it will be the dollars value..

    Bought mine a few years ago once Big Ben started printing. Economics 101 says inflation is guaranteed...Otherwise we would have printed ourselves out of every Recession...imo
    19 Oct 2012, 08:15 PM Reply Like
  •  
    Cutting services and raising taxes is inevitable. I don't see any way to avoid it. I long for an honest politician who can tell it like it is. We're 16 trillion in debt. We spend 1.5 trillion more a year than we collect. Next debate I want someone in the audience to ask Obama and Romney how borrowing 30-40 billion PER DAY is somehow not discussed in their campaign speeches- and what is their plan to stop the out of control spending. For those that read the high points, the Simpson-Bowell report was an eye opener and those are the type cuts that must be made. Those wanting more debt and QE for their own personal (stock market) gains have lost their way- time to think about future generations and the legacy we leave. Fiscal cliff will happen one way or another. You can ignore reality.... but not the consequences of reality.
    19 Oct 2012, 08:04 PM Reply Like
  •  
    J Here If honest work to fix the problems Generation Y will want to riot and kill all the older Generation groups. I keep this in mind would I be very kind to people that ruined my life? I don't think so, I may be more selective in my anger and try for a peaceful fix yet we are running out of time. the Baby Boomers will cause huge problems when they start to retire. We will need a 100 Trillion $ to try to get through this period without any wars or other big disasters, sorry no chance of that. They Ring of Fire is in motion it will effect billions of people at some time in the near future. My best advise is hope for and work for a better future but plan for the worst. Best Wishes
    19 Oct 2012, 08:25 PM Reply Like
  •  
    In the second debate, Romney actually attacked Obama on his 'failure of promise to cut the deficit in half, but instead doubling it'. Those were his words in exact quote. Obama did not respond but kept on smiling.

    Likewise, Candy Crowley asked how Romney would substantiate the sustainability of his '20% tax rate cut' if revenues do not meet projections. 'Any study to back yours up?', Candy asked. Romney did not provide any but sidestepped the question in saying that he did okay with his Massachusetts tenure and his Winter Olympics stewardship. Running a state and the Olympics is not the same as being the chief executive of the US, imo!

    The gov't is like a humongous juggarnaut. Even if the brakes are applied it will take years to bring it to a halt, or even slowing it down!

    We are doomed!
    19 Oct 2012, 08:30 PM Reply Like
  •  
    J457

    BINGO!!! I am worried for my kids generation. My only concern is with the necessary cuts that this country never ever saw, will we have rioting? Will we have strikes? Will the real unemployed that are hungry come looking for food. Unemployment is close to 20% already. I can't even imagine what it will climb to with the necessary cuts.

    hence buy you metals and your guns...Call it insurance...and consider prepping some as well...

    Of course neither one of the candidiates will even come close to what is needed. Austerity mentioned in any setting won't get you elected!!
    19 Oct 2012, 09:10 PM Reply Like
  •  
    TK

    Glad you brought up Candy Crowley. Her job was to moderate, kinda like a referee. Why did she even FACT CHECK Mitt ?

    That wasn't her place, so why does she still have a job with CNN ?

    I knew her performance was coming as she is a big Obama fan. Probably blew the chance for another woman to do a monitoring job for a long time. She had a chance to make history and she did!!

    Folks , buy your Physical metals because with our fiat money coming to an end we will need them...
    19 Oct 2012, 10:10 PM Reply Like
  •  
    Crowley corrected Romney once. Why is it okay for Romney to lie?
    20 Oct 2012, 07:03 AM Reply Like
  •  
    It is not okay unless it is to keep an enemy guessing. The Prime examples are the invasion of Europe during WW2 or Inchon during Korea Inchon was a great movie about that battle to liberate Seoul.
    20 Oct 2012, 04:39 PM Reply Like
  •  
    JOE

    Crowley's job isn't to correct anyone.! I might add it is still open for debate what actually the President did mean in the oval office....Did the President ever say it was a terrorist act for the next 10 days?

    Nope, it took 14 days !!!! So i personally believe he was talking in general terms about terrorist, like mentioning 9 11 as well.

    Moderate is all she is suppose to do...period.

    But under no condition does she have the right to FACT CHECK anyone. You don't think Barack didn't lie at all?
    20 Oct 2012, 04:59 PM Reply Like
  •  
    J457
    its great to know that someone knows where the bear does it in the woods.....All obama supporters need to read your comments
    thanks.....
    19 Oct 2012, 09:00 PM Reply Like
  •  
    If you want to bet on us dropping off the Fiscal Cliff - buy puts or short consumer discretionary stocks. a 3% drop in the income for people will likely cut down their spending. The real impact will be a drop in earnings for companies and a recession in the US.
    20 Oct 2012, 12:08 AM Reply Like
  •  
    Long SLV & GLD
    20 Oct 2012, 01:07 AM Reply Like
  •  
    Anyone have any thoughts on what the market might do Monday?
    20 Oct 2012, 01:58 AM Reply Like
  •  
    Might get mutual fund monday. I think futures might start moving up Sunday night... nobody cares about earnings, look at Thursday - we had bad earnings and the market was just flat.

    Eurozone + options expiration aggravated the drop. That said I am happy I got short Thursday. Will keep trailing my stop down in case there is a rally.
    21 Oct 2012, 04:08 AM Reply Like
  •  
    Alright looks like a repeat of last week so far. Take out some stops Sunday night and then bounce. Nasdaq is in the lead and Euro is bouncing too.

    Here is what the explanation tomorrow might say "After Elections investors are optimistic that Rajoy might ask for a Bailout"
    22 Oct 2012, 01:54 AM Reply Like
  •  
    I will assume stay flat or continue to pull back even more, it was announced today that the estimated net operating profit for US companies is expected to be 10% lower - do not think that was fully priced in today, even though we saw a significant drop
    20 Oct 2012, 02:04 AM Reply Like
  •  
    Might be time for some communication `strategy from `the fed. Maybe say something like 'We will do whatever it takes'.
    20 Oct 2012, 04:03 AM Reply Like
  •  
    Didn't look like "Risk On" to me the last two days.
    20 Oct 2012, 05:32 AM Reply Like
  •  
    al (reinvent government) gore said it best.
    "we're not cutting a damn thing".
    20 Oct 2012, 05:44 AM Reply Like
  •  
    Isn't the greater "goal" (of some) to get stuck in the mud so deep that the only recourse is continued government oversight and control? Simultaneous assurance to the masses. The history of how many Democracies? -> Our failed education system.

    Thank God for the invention of the Me phone. Everyone may concentrate on their own ego while Rome burns.
    20 Oct 2012, 09:20 AM Reply Like
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