Caterpillar CEO: Customers ‘Scared to Death’ of Fiscal Cliff

Friday, 07 Dec 2012 07:58 AM

By Dan Weil

Share:
A    A   |
   Email Us   |
   Print   |
   Forward Article  |
  Copy Shortlink
Many executives say their businesses have been adversely affected by uncertainty over the fiscal cliff, and Caterpillar is no different.

"I talk every day to our customers around this country, and they're all scared to death of what happens in January," Doug Oberhelman, the company’s CEO, tells CNBC. “All I know is that going over the cliff is too hot to handle."

The fiscal cliff refers to $607 billion of automatic spending cuts and tax increases that will begin Jan. 1 if Congress and the White House don’t reach a budget agreement before then.

Editor's Note: 'It’s Curtains for the US' — Hear Unapologetic Warning from Prophetic Economist.

"I don't think we should risk it at all," Oberhelman says. "But if we do go over the cliff, the downside is a lot more prevalent to where we are today — and lots of things will happen."

One of them is a recession, economists say.

“If you take between 3 percent and 4 percent of total spending out of an economy, a recession is very likely to follow,” Alan Blinder, former vice chairman of the Federal Reserve, writes in The Wall Street Journal.

Entitlement reform and a debt ceiling increase should be part of any fiscal cliff deal, Mark Zandi, Moody's Analytics chief economist, told Congress, CBS News reports.

"I don't think you can break this apart," Zandi said.

Editor's Note: 'It’s Curtains for the US' — Hear Unapologetic Warning from Prophetic Economist.

© 2014 Moneynews. All rights reserved.

Share:
   Email Us   |
   Print   |
   Forward Article  |
  Copy Shortlink
Around the Web
Join the Newsmax Community
>> Register to share your comments with the community.
>> Login if you are already a member.
blog comments powered by Disqus
 
Email:
Retype Email:
Country
Zip Code:
 
Hot Topics
Follow Newsmax
Like us
on Facebook
Follow us
on Twitter
Add us
on Google Plus
Around the Web
You May Also Like

BofA's Financial-Crisis Costs Become a Recurring Nightmare

Wednesday, 16 Apr 2014 19:35 PM

Bank of America Corp.'s financial-crisis hangover is lasting longer than expected, leading some investors to wonder if t . . .

Reuters Polls: World Economy on Steady Course Despite Fears of China

Wednesday, 16 Apr 2014 17:07 PM

The world economy can expect steady growth at best over the coming year, but any rapid slowdown in China as it tries to  . . .

Dow Jumps 162 on Yellen's Low-rate Vow

Wednesday, 16 Apr 2014 16:21 PM

U.S. stocks rose 1 percent on Wednesday, advancing for a third straight session as Federal Reserve Chair Janet Yellen re . . .

Newsmax, Moneynews, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, NewsmaxWorld, NewsmaxHealth, are trademarks of Newsmax Media, Inc.

 
NEWSMAX.COM
America's News Page
©  Newsmax Media, Inc.
All Rights Reserved