Eleanor Rigby - Aretha Franklin
“I’m keepin’ my face in a jar by the door.”
“Free Fallin’”, Tom Petty and the Heartbreakers
“Gonna free fall, out into nothing”
Some experts have argued that going over the cliff wouldn’t cause much immediate economic harm and that any damage could quickly be reversed by retroactively waiving the tax increases and spending cuts. That’s like saying: “Don’t worry about being run over — the car will be off you shortly.” In most cases, the damage is already done.
There is no way to know how the economy and the markets would react to our going over the fiscal cliff, but we should not be willing to find out. As Alan Kreuger, chairman of the White House Council of Economic Advisers, said Friday, there would be a serious psychological effect as well, leading people to think “that government is not capable of solving problems that it’s there to solve.”
Thus far, the markets still believe that policymakers would not be so foolish as to willingly cliff-dive — but the moment they are proved wrong, the markets could go into an expensive tailspin. Like a good reputation, market confidence is hard to get back once you ruin it.
The Congressional Budget Office — not prone to scaremongering — projects that the fiscal cliff would cause the economy to shrink by nearly 4 percent in the first quarter of 2013, enough to cause a double-dip recession. Why risk that?
-Maya Macguineas, The Washington Post
Obama in Cincinnati. Politics aside, the guy dances like my Aunt Nellie at weddings. Still on the fence if that’s a good thing. Stevie Wonder was there too