Search
 

Battle Lines Form around Fiscal Cliff

Possible solution could include tax reform and changes to entitlement programs, says Lord Abbett's Milton Ezrati.

By Milton Ezrati | Updated on December 04, 2012

Milton Ezrati of Lord AbbettBattle lines have begun to form around the fiscal cliff. They will, of course, shift and waver in coming weeks. That is the nature of negotiations. In the process, financial markets will alternately suffer bouts of fear and relief. In all likelihood, the give-and-take will go on until the last possible minute. That, too, is the nature of such negotiations. But for all the doubts that will occur in the interim, it’s likely that in the end, the talks and maneuvers will keep the nation from going off the cliff. The exact nature of coming compromises remains vague, but the positioning to date gives at least a hint.

The feeling at the moment is that the Democrats have the advantage. The election, after all, put President Obama back into the White House, modestly enlarged the party’s Senate majority and gave Democrats small gains in the House of Representatives. But Republicans retain a solid majority in the House and have the ability to block legislation in the Senate. Especially since there is dissension within the two parties, neither side has the power to impose its will on the other. What is more, both sides face tremendous pressure to compromise. If each party hopes that the public would blame the other for failure, the prospect of a recession, which would almost certainly accompany a fall off the cliff, simply carries too much risk for most politicians. Even such tough partisans as Senate Majority Leader Harry Reid, D-Nev., and House Minority Leader Nancy Pelosi, D-Calif., have bowed to the imperatives of the moment and begun to talk in terms of “grand bargains” and “compromise.” Pelosi says bluntly, “We want agreement,” while Reid decries “brinkmanship.”

Complete your profile to continue reading and get FREE access to Treasury & Risk, part of your ALM digital membership.

Your access to unlimited Treasury & Risk content isn’t changing.
Once you are an ALM digital member, you’ll receive:

  • Critical Treasury & Risk information including in-depth analysis of treasury and finance best practices, case studies with corporate innovators, informative newsletters, educational webcasts and videos, and resources from industry leaders.
  • Exclusive discounts on ALM and Treasury & Risk events.
  • Access to other award-winning ALM websites including PropertyCasualty360.com and Law.com.

Already have an account?

NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

Recommended Stories

Treasury & Risk

Join Treasury & Risk

Don’t miss crucial treasury and finance news along with in-depth analysis and insights you need to make informed treasury decisions. Join Treasury & Risk now!

  • Free unlimited access to Treasury & Risk including case studies with corporate innovators, informative newsletters, educational webcasts, and resources from industry leaders.
  • Exclusive discounts on ALM and Treasury & Risk events.
  • Access to other award-winning ALM publications including PropertyCasualty360.com and Law.com.

Already have an account? Sign In Now
Join Treasury & Risk

Copyright © 2024 ALM Global, LLC. All Rights Reserved.