Monday, 10 December 2012

Obama-Boehner talks don’t cheer analysts

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“In reality, the clock is winding down and there has not been any meaningful positive movement on the fiscal cliff since the election,” said Charles Krueger, senior policy analyst at Washington Research Group.

The White House and Boehner’s office were tight-lipped about the meeting, saying only that lines of communication were open. See full story.
 
This was a change from Friday when Boehner told reporters that there was “no progress to report.” 

U.S. stocks were little changed in early trade, as investors continued to monitor the talks. 

Krueger sees a 30% chance of a deal by year-end, 60% chance of an agreement by March and 10% chance of no deal and a “full cliff dive.” 

Greg Valliere, chief political strategist for Potomac Research Group, said the talks are now focused on a two-step scenario: first quickly passing the Bush-era tax cuts for all but the wealthiest and blocking across-the-board cuts from taking place, and secondly, setting specific revenue goals for tax and entitlement reforms to be enacted next year.
Article Source: MarketWatch

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