Bernanke Warns of “Massive Fiscal Cliff”
Although the economy and consumer confidence appear to be slowly improving, all is not as it looks. The Fed Chairman warned that the country is facing a double whammy hit to the economy in January 2013 that could be quite disastrous.
“Under current law, on Jan. 1, 2013, there’s going to be a massive fiscal cliff of large spending cuts and tax increases,” Bernanke told the House Financial Services Committee. Some liberal economists believe this combination will cut our GDP growth by 2/3. Conservative economists are warning of even more drastic results.