As concern grows over the “fiscal cliff”, Lloyd Blankfein (of Goldman Sachs), Senator Alan Simpson and Erskine Bowles tell us how to avoid its negative consequences. Our first article this week features a short interview with these three, who believe that if politicians can compromise on a plan it will be very positive for our economy and markets.  There are currently a number of positive indicators for the U.S. economy, which are summarized in our next article.  We follow this with news of a call by corporate CEOs for law makers to compromise on the fiscal cliff and debt.  The number of influential people in this country who are demanding compromise seems to be growing.  We close with a look at the possibility that the U.S. debt ceiling will have to be raised in the early part of next year.

Blankfein, Simpson, And Bowles Call For Action On Nation’s Deficit – Here is a link to a 35-minute video of an interview last Thursday with Lloyd Blankfein of Goldman Sachs, Senator Alan Simpson and Erskine Bowles.  Simpson and Bowles Co-Chaired the National Commission on Fiscal Responsibility and Reform.  They focus on the consequences of the upcoming fiscal cliff and also the nation’s deficit.

Good News For The U.S. Economy – “The economy is improving, and the labor market is getting better,” said Robert Brusca, President of Fact & Opinion Economics and former New York Fed Economist.  This article summarizes a number of surveys on the economy by both private business and government. It backs up the opinion that our economy is improving.

CEOs Call On Law Makers To Compromise On “Fiscal Cliff” And Debt – Corporate CEOs urged law makers to come to a compromise on government debt and the fiscal cliff.  Their message runs squarely against long-held partisan positions on Capitol Hill. Republicans have resisted any revenue increases to reduce deficits and Democrats have largely vowed to maintain popular entitlement programs.

U.S. Appears Set To Hit Debt Ceiling In January – Remember what happened the last time the debt ceiling had to be raised in August 2011?  The politicians delayed the decision until the last minute, creating a great deal of market uncertainty.  The current estimate is that the debt ceiling will again have to be raised in the early part of 2013.

We hope you enjoy reading these articles along with us and that you find them informative.  Please forward this to your friends and family.

John R. Day and Bill W. Ennis