Footholds in a crumbling fiscal cliff

The promise of fiscal cliff compromise is a ray of hope for markets fearful of prevaricating politics. But Congress needs to act quickly to ensure 2013 is a good year for the US.

Markets got some relief when it was announced that the US House of Representatives would be meeting on Sunday, December 30 to discuss and potentially vote on the fiscal cliff issues that were dogging sentiment and risking a period of economic weakness into the new year.

It is not clear, at this stage, what fiscal plans will be brought to Congress, let alone pass. But in an otherwise souring outlook for the budget negotiations, the promise of compromise was seen as potentially welcome news.

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