Video: Forget the 'Fiscal Cliff' - Debt Ceiling is Much ScarierSubmitted by emalvini on Sat, 12/29/2012 - 21:51
Reuters - Ryan Vlastelica, Edward Krudy and Doris Frankel
Investors fearing a stock market plunge if the U.S. tumbles off the "fiscal cliff" next week may want to relax. But they should be scared if a few weeks later Washington fails to reach a deal to raise the nation's debt ceiling as that threatens a default, another credit downgrade and a financial markets panic.
Market strategists say that falling off the cliff for any lengthy period -- which would lead to automatic tax hikes and stiff cuts in government spending -- would badly dent both consumer and business confidence, but it would take some time for the U.S. economy to slide into recession. In the meantime, there would be plenty of chances for lawmakers to make amends by reversing some of the effects.
That has been reflected in a U.S. stock market that has still not shown signs of melting down. Instead, it has drifted lower and gotten more volatile.
Read more: http://www.nbcnews.com/bu...