Understanding the Sequester
A recent survey conducted by The Hill found that only 36% of likely voters even knew what the term “sequester” meant. For the record, “sequester” in our current fiscallexicon, refers to the $1.2 trillion of spending cuts spread out over the next 10 years that are set to commence on March 1, 2013. These cuts have the potential to impact both the markets and the economy Although time still remains for a deal to be reached, it seems increasingly unlikely that this will actually occur, making it more likely that the effect of these spending cuts will be felt, at least temporarily. Click here to read JP Morgan's informative article about the Sequester.