Oliver's Insights - The US fiscal cliff, debt ceiling & economic oulook

Key Points

• The US deal to avert the fiscal cliff combination of tax hikes and spending cuts is not the long term "grand bargain" that could have been hoped for to address America's long term budget and debt problems.

• Such issues will come up again in February in negotiations to raise American's debt ceiling, possibly resulting in another bout of market volatility around then.

• However, by scalling back the bulk of the huge recession threatening fiscal cutbacks that would otherwise have occured this year, the fiscal cliff means that the US economy will likely be able to pick up speed to around 2.5% helped in particularly by a housing recovery.

• This great news for the global economy and growth assets such as shares

 

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