Photo: a.dombrowski via Flickr
Back in early April, when the market was still doing fine, and the odds of a double-dip seemed incredibly remote, we went and visited Nomura for a briefing on the US economy.One line from top economist Lewis Alexander really stood out for us at the time.
We’ll talk about more of the points later on, but one interesting thing we learned is that investors are interested in the 2013 budget “fiscal cliff” a lot earlier than Alexander expected. He had assumed people would start focusing on it later this year, but there’s already tons of interest.
Now you really can’t turn anywhere without hearing about the fiscal cliff, and how it’s already freaking out businessmen, who are hoping for a clean GOP sweep that takes the issues off the table.
All that being said, we’re not sure which way the causation goes. Is the economy/market faltering because of the fiscal threat? Or is the faltering economy an excuse for people to start shouting louder about the fiscal threat. After all, the slowdown is global, and Europe seems clearly to be a big contributor to it.