So what might happen with the so called U.S. Fiscal Cliff? What will be the result for the markets?

The gov't pumping more cash into the system is only an addict's short term fix.

The markets are over priced. The U.S. S&P 500 CAPE is about 21 and the average is approx. 16.5 so it is about 29% over priced (present Canadian market is also expensive (I do not have the #'s handy)).

Stocks in general are not cheap.

Obviously math tells us that the U.S. needs to be below the average to even things out to get back to the average. So just how low will the markets, U.S. and CDN. correct??? 50% corrections are not unusual.

Will it be in 2013 or 2014??

IKan