WSJ: Fiscal Cliff “More Hype Than Hazard”

WSJ: Fiscal Cliff “More Hype Than Hazard”

A provocative new article at the Wall Street Journal says the fiscal cliff is “more hype than hazard”.

Columnist David Weidner claims that talk of the “fiscal cliff” is nothing more than political theater, designed to get politicians to compromise.

An unfortunate side effect is the financial ruin that will await us if our politicians fail to make a deal – or at least, that is what the media is making it out to be.  The coverage, Weidner says, is “panic-inducing, falling somewhere between that given to an approaching hurricane and an alien invasion.”

The hyperbole has fueled a selloff on Wall Street.  The S&P 500-stock index has fallen almost 4% in the aftermath of the election.

Weidner says that the media needs to take a more moderate tone.  As a result of all the hype, investors are making decisions based on panic and fear rather than a sober assessment of the future.  The coverage is hurting, not helping us.

To read Mr. Weidner’s entire column, check out the Wall Street Journal.

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