Long term outlook is still largely uncertainty as the Super Committee cannot come to agreement.
Without changes, there is some $1.2 trillion in federal programs that will be automatically cut in 2013.
- Military bases and surrounding communities will be hit as spending is scaled back and surrounding area is impacted
- HUD programs will be cut and rental subsidy programs, community development block grants (CDBG) and HOME Investment Partnership grants (provides grants for communities for affordable housing) may be cut
- Potential effect on US credit rating furthering volatility
Additionally, several estate tax laws expire in 2012 as well as the Bush era tax cuts implemented in 2001. With elections coming up, will it influence the economy, or vice versa?