Stocks slide as impasse over budget deficit looms
BY Staff and Wire Reports
Thursday, November 15, 2012
11/15/12 at 2:22 AM
Investors drew little hope Wednesday for a quick compromise in U.S. budget talks after President Barack Obama insisted that higher taxes on wealthy Americans would have to be part of any deal.
Stocks fell sharply, and even a signal from the Federal Reserve that it could launch a program in December to speed job growth failed to encourage investors. The Dow Jones industrial average dropped 185 points.
Obama made clear he would seek higher tax revenue from the wealthiest Americans, which faces opposition among most Republicans in Congress. Obama said that a modest increase on the wealthy "is not going to break their backs."
The "cliff" is a package of tax increases and government spending cuts that will take effect Jan. 1 unless Obama and Congress reach a deal first.
Stocks have fallen steadily since voters returned Obama and a divided Congress to power Nov. 6. The Dow has fallen 675 points, or 5.1 percent, including three daily drops of more than 100 points.
The Standard & Poor's 500 index has dropped 5 percent in that time, returning to where it stood in late July.