“U.S. Treasury Secretary Tim Geithner is telling business and political leaders to be careful about major cuts in spending, suggesting that too much, too fast might lead to a new recession.
Economists have been warning that the United States faces a “fiscal cliff” in the next year as the Bush tax cuts expire and automatic spending cuts equaling $1.2 trillion kick in. Half would come from domestic spending, half from defense.
Some fear that extending the tax breaks again while cutting spending will hurt U.S. GDP growth, prompting a quick decline just as the economy gets back on its feet….”
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