Sonders Sees "Coiled Spring" Economy, But Concerned About Cliff

Charles Schwab Chief Investment Strategist Liz Ann Sonders says the expiration of the Bush-era tax cuts could be enough to push the economy into recession, but adds that the stock market could see a “huge boost” if legislators are able to accomplish a reform of U.S. tax policies as the fiscal cliff approaches. Sonders tells FOX Business Network that there are some pieces of the fiscal cliff that are “low-hanging fruit” — that is, pieces on which Republicans and Democrats could find agreement. But she expressed concern about what a failure to address the Bush tax cuts could mean for the economy, which she says is currently showing positive signs. She says the financial sector is “largely on the mend”, and that positive action on the fiscal cliff could lead businesses, which have been wary of spending or investing, to change course. “I do believe there is a coiled spring here,” she said.