TODAY | November 08, 2012
>>> wall street is looking to rebound today from one of the worst one-day losses of the year. the dow plunged 313 points on wednesday amid fears about the looming fiscal cliff of spending cuts and tax increases that could push the u.s. into another recession. maria bartiromo is the host of cnbc's " closing bell ."
>> well, people are putting two and two together, saying wall street dropped the day after the election. simple question, why?
>> you're absolutely right. well, first off, people are worried about higher taxes, higher regulation under it had obama presidency. but also, it is this near-term worry about the fiscal cliff. at the end of this year, we will see $600 billion of spending go away. there are spending cuts coming, that means, defense companies, transportation, construction, they may very well have to lay off workers. in addition to that, we've got the highest tax increase coming on virtually all income levels. these two things will coincide, and that is the fiscal cliff to basically possibly push the u.s. economy into recession unless congress does something about it.
>> is wall street basically registering its doubt and skepticism that either party can come together and resolve this?
>> that's right. i think we will see compromise. already you've seen the president reach out to the other side. john boehner making comments that they also want to work together. but, again, this is the choice that we have been talking about over the last several months. spending cuts, tax increases.
>> we should mention that we're also more renewed fears in europe, the greek debt crisis rearing its ugly head.
>> absolutely. it's clear that greece cannot pay its bills. now we're thinking, okay, this is another pressure for the u.s. economy . so we're all waiting on some kind of compromise out of washington as well as some stability in europe. but for sure, we'll probably see some volatility going forward. doesn't really mean much, though, long-term.
>> i was going to say, let's get some perspective. there was a huge drop after the president's election four years ago. but over the last four years, wall street has been up.
>> that's right. over the long-term, you have to look at fundamentals. and the corporate sector right now is very strong. a lot of cash on the balance sheets, longer term earnings should be okay. but over the near term, expect some choppiness.
>> maria, thank you. and i know you'll have much more on " closing bell " today on