January 2nd, 2013
09:02 PM ET

America averts fiscal cliff, but there's still trouble ahead

Washington technically dodged the fiscal cliff at the last second with the House passing the fiscal cliff bill 257 to 167. But, instead of cutting spending and raising revenue - the deal increases spending , and cuts revenue.

The fiscal cliff bill also puts off for two months $1.2 trillion in spending cuts that were supposed to take effect today. And because this deal extended most of the Bush tax cuts, the Congressional Budget Office says it will increase deficits by about $4 trillion over the next ten years.

It took more than 500 days for Congress and the President to  get to a deal on avoiding the fiscal cliff. In the days and weeks ahead, raising the debt limit and dealing with sequestration will be next battle line.

Is there any hope for a deal now that will avoid an American financial crisis?

Gross: It's a fairly pathetic situation

OutFront tonight: Founder & Co-CIO, PIMCO Bill Gross.

Filed under: Congress • Economy • Fiscal Cliff
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