by Bill McBride on 11/07/2012 08:43:00 PM
Wednesday, November 07, 2012
I'll write something soon on the "fiscal slope". It is NOT a "cliff" ... and I suspect something will be worked out (the compromise will very likely include higher tax rates on high income individuals - so the agreement will probably have to happen after January 1st so some politicians can claim they didn't vote to increase taxes). No worries. Jan 1st is not a drop dead date.
Note: Jim Hamilton suggests breaking "the problem into smaller pieces", and Macro Man says the 'fiscal cliff may have to be downgraded to "road hump"'.
From Reuters: Greek government defies protests to approve more austerity
Greece's government voted by a razor thin margin on Thursday to approve an austerity package needed to unlock vital aid and avert bankruptcy ...The beatings will continue until morale improves.
The bill covering the bulk of 13.5 billion euros' ($17.2 billion) worth of belt-tightening measures is a precursor to the 2013 budget law, which the government is expected to push through on Sunday.
If it does, it is expected to unlock a 31.5 billion euro aid tranche from the International Monetary Fund and European Union that Greece needs to shore up its banks and pay off loans.
• At 8:30 AM, the initial weekly unemployment claims report will be released. The consensus is for claims to increase to 370 thousand from 363 thousand.
• Also at 8:30 AM, the Trade Balance report for September will be released by the Census Bureau. The consensus is for the U.S. trade deficit to increase to $45.4 billion in August, up from from $44.2 billion in August. Export activity to Europe will be closely watched due to economic weakness.
Once more question for the November economic prediction contest and four question for the November contest (Note: You can now use Facebook, Twitter, or OpenID to log in).