CNN is reporting that a deal on the fiscal cliff fiasco is in sight. While this may be in time to create the instantaneous contraction of the economy, it's not fast enough to prevent all damage to the economy. A quick look at the Dow Jones for the past 5 days:
Generally, this shouldn't look like a mountain range
While I don't like to equate individual stock prices directly to the health of the overall economy, I think it does show that business investors are worried about what is going to happen without a deal. What I do see when I look at this graph is swings in confidence and general uncertainty. However, if there was another economy in the world more promising, and more certain investment prospects, I think you would have seen steeper dives. The question for most investors is, if not American companies, then what? There's only so much land and gold to hoard, and if the entire global economy contracts, who can rent the land or buy the gold?
Hoping that a deal comes sooner rather than later... and that we stop this nonsense and never do this again.