In a sign that there could be a few more hurdles to jump in the resolution negotiations for the upcoming fiscal cliff, Senate Majority Leader Harry Reid (D-NV) told reporters during a recent press conference that he has low hopes for a positive outcome in the talks.
Most notably, the senior senator from Nevada added in his statements that he all but demands a debt ceiling increase be added to the final deal – something that Congressional Republicans are sure to reject at the meeting table. Reid also slammed recent comments from GOP leaders, referring to their guarded commitments to revenue generation – but not tax cuts – as "happy talk."
"They talked some happy talk about doing revenues, but we only have a couple weeks to get something done," Reid was quoted as saying. "So we have to get away from the happy talk and start talking about specific things."
During the press conference, the majority leader covered a range of topics related to the fiscal cliff. He reiterated his opposition to benefits changes to programs such as Social Security, Medicare and Medicaid, but conceded that he would support structural alterations if the GOP was willing to discuss substantive tax increases in return. However, Reid stated firmly that, despite all options being on the table, both President Barack Obama and Congressional Democrats would not budge on the issue of tax rates for the top 2 percent of U.S. earners.
Comments such as these suggest that the ongoing negotiations will continue until the eleventh hour, or even beyond. In that case, the U.S. economy could suffer a $600 billion hit over the next 10 years, some of which will be felt immediately by American companies, consumers and investors. If you're interested in protecting your wealth against market volatility that could result from stalled or abandoned talks, you might want to consider visiting GreatWealthStrategies.com, downloading a "Free Game Plan Report" and learning more about the benefits of cash flow real estate.