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Tue Jun 19, 2012, 12:29 PM

 

Fiscal-Cliff Concerns Hurting Economy as Companies Hold Back

http://mobile.businessweek.com/news/2012-06-19/fiscal-cliff-concerns-hurting-economy-as-companies-hold-back

Companies are starting to delay hiring and spending out of concern that Congress wont reach a compromise in time to avoid automatic tax increases and budget cuts that would pull billions of dollars of purchasing power out of the economy.

Faced with a so-called fiscal cliff of more than $600 billion in higher taxes and reductions in defense and other government programs in 2013, U.S. companies are pulling back, though the deadline for congressional action is more than six months away.

Eaton Corp. CEO Sandy Cutler
The best strategy for companies to follow when confronted with such uncertainty ahead of Dec. 31 is to stay lean and keep your inventories taut, Sandy Cutler, chief executive officer of industrial equipment-maker Eaton Corp. (ETN) in Cleveland, told a conference May 31.

Economists are predicting this trend will pick up through the year. A lot of people see the fiscal cliff as a 2013 story, but you dont board up the windows when the hurricane is there, you board up the windows in anticipation, said Michael Hanson, senior U.S. economist at Bank of America Corp. in New York.

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Reply Fiscal-Cliff Concerns Hurting Economy as Companies Hold Back (Original post)
dkf Jun 2012 OP
Turbineguy Jun 2012 #1
DJ13 Jun 2012 #2
Cary Jun 2012 #3

Response to dkf (Original post)

Tue Jun 19, 2012, 12:39 PM

1. The GOP Plan

Keep up the fear, keep people out of work. Become King of a shitpile, then blame the Democrats for leaving a mess. Finish transfer of wealth to 1 percent.

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Response to Turbineguy (Reply #1)

Tue Jun 19, 2012, 01:09 PM

2. Sounds exactly like whats happening

+1

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Response to dkf (Original post)

Tue Jun 19, 2012, 01:14 PM

3. Right.

Thanks for this information. I think it's time for me to stay lean and to keep my inventories taut by dumping my Eaton Corp. stock in favor of a company with more foresight and imagination and less fear.

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