46 M americans on Food stamps :Fiscal Cliff looming....Europe & Asia ???
The U.S. "fiscal cliff": I do not believe investors are taking this threat seriously enough. Around the end of 2012, the U.S. Government is poised to raise taxes and institute automatic budget cuts. To see what this combination has done to other economies, just take a look at Greece and Spain - which now have unemployment rates of over 20%. While the U.S. economy is a good deal stronger than Greece or Spain, it is simply common sense to see that higher taxes and reduced government spending could greatly impact our economy as well. Some analysts believe the "fiscal cliff" could shrink the economy by up to 5%. If that happens, we could be in for a major bear market.
Europe and China are slowing, and the risks of a financial crisis still seem significant. A slowdown in Asia is likely to create challenges for both televisions and mobile phones. However, if a worst-case scenario plays out in Europe, it could lead to another financial crisis. With many countries burdened with very heavy debt levels, the ability for governments to stem another crisis appears limited.