Avert Fiscal Cliff With Entitlement Cuts, Tax Increases

Oct. 3 (Bloomberg) -- How long does the U.S. have beforethe bond market demands much higher interest rates onTreasuries, forcing a sudden and painful belt-tightening onevery American? For a sense of the answer, tune in a week or soafter the presidential election.

That’s when Congress reconvenes to decide what to do aboutthe expiring tax breaks and across-the-board spending cuts thattake effect in January. Combined, they equal about 5 percent ofthe economy.