Obama heading home

Efforts to prevent the U.S. economy from going over a “fiscal cliff” stirred back to life on Wednesday with less than a week to go before potentially disastrous tax hikes and spending cuts kick in at the New Year.What will happen? Will huge job losses be the future? Market crashes?

House of Representatives  John Boehner on Wednesday urged the Senate to pass its version of legislation to avert the cliff in a sign that congressional efforts to avoid a  crisis are coming back to life days ahead of the year-end deadline.

Just before Christmas…With only a week left before a deadline for the United States to go over a “fiscal cliff,” lawmakers played a waiting game on Monday in the hope that someone will produce a plan to avoid harsh budget cuts and higher tax for most Americans from New Year’s Day.

The situation in the retail sector…worries about bad results leads to job worries, if taxes go up margins get squeezed and more unemployment in the future…The 2012 holiday season may have been the worst for retailers since the 2008 financial crisis, with sales growth far below expectations, forcing many to offer massive post-Christmas discounts in hopes of shedding excess inventory.

The markets… Stocks fell for a third straight day on Wednesday, dragged lower by retail stocks after a report showed consumers spent less in the holiday shopping season than last year.

The Treasury reacted with  announcing   a series of measures that should push back the day when the government will exceed its legal borrowing authority as imposed by Congress by around two months.

Zynkin offers a solution to help business reduce costs with the weight of this cliff sliding onto local businesses.

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