Experts think short term deal will be reached
With the fiscal cliff looming in the coming days, and President Barack Obama back in Washington to try and get a deal done in the 11th hour, you might be surprised as to what will and won’t change come January first.
Simply put, there won't be much change according to those in the know. KTRH Money Man Pat Shinn says you shouldn't worry too much about going over the cliff. Why? Because he's expecting cooler heads to prevail.
“My guess is that we’ll see, at least, a temporary fix so that there’s not a lot of confusion as we move into the first week of January,” Shinn says.
Shinn thinks that Wall Street is expecting the same thing, even though the Dow Jones Industrial Index was down a little over 24 points on Wednesday.
“The stock market is not worried about going over the cliff, so that gives us the indication that the big money is betting on at least some sort of temporary deal,” Shinn explained.
That means your tax bracket will remain the same even if there is a little less in your pay check. But Austin based strategist Matt Mackowiak tells KTRH that a temporary deal doesn’t solve the issue that Washington created for the rest of the country.
“This deal is not going to solve the problem. This deal would be about saving face for both sides,” Mackowiak explained.
So there is a lot of pressure on the President and Speaker John Boehner to strike some sort of compromise. But Mackowiak thinks there might be more pressure on the President to get a deal done.
“He wants to have a second term of achievement. Without getting this deal done, it hurts the economy, which hurts his legacy. It will poison the well on Capitol Hill and make it very difficult to get bipartisan agreement on big issues,” Mackowiak explained
But again, most analysts are expecting a short term fix so that you won't be affected next week.
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