Salient to Investors:
Companies are delaying hiring and spending out of concern about ‘ fiscal cliff’ and economists are predicting this trend will pick up through the year.
Bank of America sees U.S. growth falling to 1.3 percent in Q3 and 1 percent in Q4.
Sixty-one percent of 234 fund managers surveyed by Bank of America last month said the EU was the biggest concern in the world economy, more than three times as many as said it was the U.S. fiscal cliff.
Chad Stone at the Center on Budget and Policy Priorities does not see a fiscal cliff even if Congress fails to act by the end of 2012, as the U.S. won’t immediately lapse into recession.