Democrats want to increase taxes on the rich and ultra-rich. No deal gets done without that happening. This has been stated by the President and was re-iterated by Pelosi on Sunday. Democrats also feel they have the upper hand.
Republicans don't want to increase taxes without significant spending cuts.
Democrats are not likely to yield on their entitlement programs.
For Republicans, if you face having to swallow tax hikes without getting the spending cuts you want, the solution is simple...go over the Cliff. That way the spending cuts happen in conjunction with the tax hikes.
Both parties claim they are keeping their constituents best interests at hand by not yielding to the other's pressure. A no fault failure.
Besides, by attempting to avoid the Fiscal Cliff is basically trying to kick the can. The results of going over the Cliff actually help us take a step in the right direction towards fiscal responsibility, not put it off. A recession is a given if we go over the cliff, but once we get past that, the road to recovery would be stronger.
Recession is inevitable. Maybe the government can keep borrowing for a while and maybe bernanke can add so much liquidity that it keeps growing but eventually it's going to happen. The longer they put it off the deeper our problems become. In 2009 we stared death in the face and took dramatic action. What is it we're supposed to say about 2012?
The problem here isn't the fiscal cliff or the eurozone crisis, it's a fundamental flaw in western way of thinking. That's from Greece to the USA. We've been doing things wrong and excuses, bailouts, kicking the can, and blaming someone else is much easier to stomach. Well, screw us. We deserve what's coming.
HOGWASH!!!!!................................kicking the can is the American way and it works and will continue to work whether you like it or not. It's called "Progress". It's hilarious how you clowns can't even realize how the world is changing as you type your thoughts for the world to see on a worldwide network with instant access.......Keep kicking the can, that's what it is all about! Prezident Obama just met with Tim cook to discuss the "fiscal cliff"...what does that tell you? You're all Clowns!
No way Jose, the Cliff has been cancelled due to lack of interest and participation. Do you really think the Republicans are that stupid enough to hold the country hostage two years in a row. They'll be extinct and be voted out in the next election if the Cliff happens.
Go long, buy before the Fiscal Rally Resolution starts. Why do you think the 1%, institutions and smart money are buying the bottom if they don't think the it will pass thru.
I don't think it will happen because the Republicans are that stupid, I think it will be because the Democrats are. I think the Republicans are actually willing and ready to concede the tax hikes, but I don't think they want that to happen if the only cuts are defense spending. I think the Democrats will be the ones to play hard ball and force the issue. I can't really see them conceding anything beyond defense cuts. So, again, the only solution to put us on the path to fiscal responsibility is to go over the cliff.