Mamta Badkar has put together a fantastic presentation explaining everything you need to know about the Fiscal Cliff, the scenario that will come at the end of 2012, when a whole host of spending cuts and tax hikes will come into force and hammer the economy.
So how will it ultimately get resolved
The below slide is a summation of Goldman’s most likely outcome, which is basically: They’ll mostly put things off for a few months, with an eye towards a “grand bargain” on taxes and spending in mid-2013. So basically, think the super-committee all over again.
Of course, that’s probably not going to work, and that probably means the whole crisis will have to be re-addressed.
Photo: Business Insider