Fiscal Cliff Worst Case Scenario: 3.8% Drag On GDP; 30% Market Plunge

Two great slides here from Sergei Pliutsinski at Credit Suisse detailing the worst case scenario of the fiscal cliff, and what it could mean to markets (in the worst case, expect a 3.8% drag on GDP and a 30% S&P collapse).

One side note before looking at the slides, it’s our understanding that Wall Street investors have zero worried about the fiscal cliff. People talk about it a lot, but everyone thinks it will get resolved.

fiscal cliff

Photo: Credit Suisse

fiscal cliff

Photo: Credit Suisse

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