alexoscarew's  Instablog

alexoscarew
Send Message
My blog:
  • Why The Fiscal Cliff Deal Is Pathetic 0 comments
    Jan 3, 2013 7:13 AM

    http://www.investmentcontrarians.com/recession/why-the-fiscal-cliff-deal-is-pathetic/1181/

    Why the Fiscal Cliff Deal Is Pathetic

    When it comes to making an economic forecast for the U.S. economy in 2013, a huge stumbling block was the uncertainty prior to the deal to avert the fiscal cliff. The just-announced new deal to avert the fiscal cliff is absolutely pathetic and will not accomplish what many were hoping for; a comprehensive long-term deal to lower the U.S. budget deficit and create an environment that will foster long-term gross domestic product (GDP) growth.

    The level of uncertainty has recently started to impact consumers. The impact on consumer confidence was noted during the latest Conference Board Index in which consumer confidence fell six percent to 65.1 in December from November, the lowest since August 2012. (Source: "The Conference Board Consumer Confidence Index® Declines," The Conference Board, December 27, 2012.)

    GDP growth is heavily dependent on consumer confidence. Since the majority of the U.S. GDP growth is based on consumer spending, any pullback in confidence by consumer is a worrying sign, with its potential for lowering an economic forecast for 2013.

    An interesting dynamic was that consumers assessed that current conditions improved in December from the previous month. Business conditions rose to 17.1% from 14.6% the previous month; however, expectations for business conditions over the next six months declined to 17.6% from 21.3%.

    http://www.investmentcontrarians.com/recession/why-the-fiscal-cliff-deal-is-pathetic/1181/

Back To alexoscarew's Instablog HomePage »

Instablogs are blogs which are instantly set up and networked within the Seeking Alpha community. Instablog posts are not selected, edited or screened by Seeking Alpha editors, in contrast to contributors' articles.

Comments (0)
Track new comments
Be the first to comment
Full index of posts »
Latest Followers

StockTalks

More »
Instablogs are Seeking Alpha's free blogging platform customized for finance, with instant set up and exposure to millions of readers interested in the financial markets. Publish your own instablog in minutes.