The Fiscal Cliff Would Crush the Financial Sector

WASHINGTON - A new analysis from the American Action Forum finds that going over the fiscal cliff would not only have an effect on unemployment, but also on the financial markets as well. American Action Forum President Doug Holtz-Eakin and COO Cameron Smith found that "cliff diving would have significant impact on financial markets, impair asset values, exacerbate credit stringency, and amplify the direct effects on the main street economy. Moreover, contrary to what some have asserted, such impacts cannot be 'unwound' by retroactively legislating away the fiscal cliff."