While some advisers are urging investors to scale back their portfolios significantly in anticipation of the looming fiscal cliff, others are encouraging investors to stand pat. CNN’s Walter Updegrave writes that as long as investors have a strategy that can tolerate some risk over an extended period, “then you probably shouldn't be making any changes -- at least not dramatic ones,” Updegrave said. “If you change course each time there's the possibility of a setback in the market, you're no longer staying true to an investing strategy. You'll just be reacting in a knee-jerk way to every potential threat that comes along." - Read more at CNN
AEROSPACE GROUP SAYS CANDIDATES IGNORE DEFENSE CUTS Marion Blakey, chief executive officer of Aerospace Industries Association, a leading defense and aerospace trade group, criticized both presidential candidates on Wednesday for failing to address the year-end sequestration that threatens to slap the Pentagon with a half trillion dollars worth of cuts, The Hill’s Jeremy Herb reports. “It’s a shame that tonight’s debate didn’t address the 800 lb. gorilla in the room in today’s politics — the upcoming ‘fiscal cliff’ and sequestration cuts that will together plunge our economy into recession and threaten our national security,” Blakey said in a statement. “Regardless of the winner in November’s election, if sequestration isn’t fixed, American citizens will be on the losing end of this poorly-conceived idea.” - Read more at The Hill
CLINTON SAYS IT’S TOO SOON TO PANIC Former President Bill Clinton told a packed crowd in Baltimore on Tuesday not to worry about the potential financial crisis. "Some of you may be worried about this fiscal cliff — don't be, yet…. No matter what happens, they will have to do something on this budget." The Baltimore Sun’s John Fritze reports that the 42nd president called on Congress to adopt a 10-year budget plan before the end of the year. “The Nov. 6 election will be a defining event that will force Republicans and Democrats to work more cooperatively,” Clinton said optimistically. - Read more at The Baltimore Sun
FEEBLE ATTEMPT TO FIX THE DEBT Whether it was just political grandstanding or a serious attempt at getting some important legislative work done, Rep. Gerry Connolly, D-VA, tried to get Congress to return to Washington during the House’s Oct. 16 pro forma session to solve the nation’s looming debt crisis. His attempts were quickly shot down by Republicans, who adjourned the House until Oct. 19. “You would think that the House Republican leadership would understand that it is time to put politics aside and do what’s best for our country and our citizens right now,” Connolly said. - Read more at The Business of Federal Technology
COBURN CONFIDENT CONGRESS WILL AVOID CLIFF Sen. Tom Coburn, R-OK, told Roll Call’s Niels Lesniewski that he is confident Congress will strike a deal after the November election to avert going over the fiscal cliff. Coburn is a member of the bipartisan “gang” of eight senators that are assembling a deficit reduction plan to bring to the table during the lame-duck session. Coburn blamed Congress’ failure to resolve the country’s debt problem earlier on Congressional leadership. He recently released his annual “Wastebook” report, which identifies the top sources of government waste and said the number one source of waste was the unproductive legislature. “We’ve never faced this serious of a situation in our country’s history in terms of our debt deleveraging… and yet… what we did was do nothing ... because there’s an election coming up, at a time when the country’s problems are the greatest.” - Read more at Roll Call
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