U.S. Indecision Keeps Market at Bay

President Barack Obama and congressional leaders will begin budget talks today aimed at avoiding the so-called "fiscal cliff" that could reduce U.S. GDP by around 5% overnight with new harsh austerity measures. But, Republican leaders are reluctant to raise taxes, while Obama refuses to accept a deal where the rich do not pay more in taxes.

The indecision led to a significant fall in both the U.S. markets and global markets, as a recession in the U.S. would take a significant toll on global growth. If unresolved, the fiscal cliff will kick in on January 1, 2013 with about $600 billion in broad tax increases and deep spending cuts that are automatically put into effect.