It seems the economy is about to fall off a cliff. The Dow Jones Industrial Average dropped by 185 points today because of grim prognostics in the future of the world economy. The price of oil rose because of Israel’s surgical strike on a Hamas leader, and stocks in the U.S. keep dropping in response to the uncertainty of the U.S’s budget for next year. President Obama warned that if the Republicans and he don’t reach a suitable budget, the economy could easily fall into another recession.
President Obama said he’s open for ideas and that he will try to reach an agreement with the Republican congressional leaders in upcoming talks. It is likely that the Republicans will give small concessions to Obama and the economy will, at least for a little longer, stay on top of the cliff.
Sources :http://business.financialpost.com/2012/11/14/we-could-go-back-into-recession-obama-calls-for-rich-to-pay-more/
http://etfdailynews.com/2012/07/27/u-s-economy-17-reasons-why-a-recession-in-2012-is-underway-indexsp-inx-spy-tza-faz-gld/