Chart of the Day
Posted at 10:45 a.m. on July 2, 2012
— Chart showing “top Wall Street strategists and economists still aren’t factoring into their estimates for next year the epic mix of tax increases and spending cuts that are expected to kick in January 1,” via Fortune.
“In all, Wall Street strategists, according to the Blue Chip survey, believe the U.S. economy, before inflation, will grow 2.3% in the first half of 2013. Last month, the Congressional Budget Office said that if the fiscal cliff happens, it’s likely that the economy will fall into recession, with GDP declining 1.3% in the first half of the year. Even that, though, might be optimistic… Bottom line: If we do go over the fiscal cliff, Wall Street’s expectations have a long way to fall. The market may too.”