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Kudlow: Fiscal Cliff Won’t Resolve for Months After Election

As lawmakers return to Washington after more than a month long recess, investors and voters want to know what they’re going to do about the fiscal cliff.

And from the look of things –it’s nothing.

CNBC’s Larry Kudlow and his Washington colleagues are all hearing that lawmakers won’t attempt to seriously bridge this pressing issue until after the election.

Considering the fiscal cliff involves complex spending cuts and tax hikes that would take effect early in 2013 – that leaves them precious little time.

And as far as Larry Kudlow can tell - it won't be enough time.

“I can tell you from working in the White House during the Reagan years, you don’t just snap your fingers and get a deal. These things can take months,” said Larry Kudlow. “I can tell you from my experience in politics that they’ll debate and debate. There is no way it resolves quickly.”

That's a serious problem, especially in light of new research from Jeff Kleintop of LPL Financial that shows the market is expecting a quick compromise after the election.

"Remember we didn't see a quick compromise last year when we had to raise the debt ceiling," reminds Kleintop during a live interview on The Kudlow Report. His research suggests the fiscal cliff debate will play out in similar fashion. "It was gridlock then, and it looks like it will be gridlock again."

Total Cost: $58,065Tuition: $43,840Room & Board: $13,980Fees: $245Claremont McKenna, located near downtown Los Angeles, accepted only 12.4 percent of its applicants for the class of 2016, a rate that admissions counselor Brandon Gonzalez said ensures that students here will be going to school only with other top students.�The class of 2016 will be one of the most talented groups of students we have ever seen,�  The school will charge these students a tuition of $21,920 per semester, or $43,840 for the entire academic year, incurring a total cost of
Total Cost: $58,065Tuition: $43,840Room & Board: $13,980Fees: $245Claremont McKenna, located near downtown Los Angeles, accepted only 12.4 percent of its applicants for the class of 2016, a rate that admissions counselor Brandon Gonzalez said ensures that students here will be going to school only with other top students.�The class of 2016 will be one of the most talented groups of students we have ever seen,� The school will charge these students a tuition of $21,920 per semester, or $43,840 for the entire academic year, incurring a total cost of

Despite all these warnings, chatter suggests Dems and the GOP are not going to do anything. That’s even though failing to take action on the issue could very well trigger a recession early next year. Read More: Fiscal Cliff Will Cause Recession, CBO Warns.

Kleintop added that in his view, "I think we slide back into recession. And we could see a pretty serious slide in stocks."

In fact, the negative ripple may have already begun. Corporate leaders have been telling CNBC that already the uncertainty over the issue is affecting key decisions – especially hiring.






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