Washington Daybook: Thinking Big

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Sen. Charles Schumer and Senate Majority Leader Sen. Harry Reid during a news conference to discuss the fiscal cliff.

President Obama meets with governors of seven states including Wisconsin’s Scott Walker today to promote his approach to avoiding the fiscal cliff.

He’ll also discuss in an exclusive interview with Bloomberg Television what’s at stake in negotiations with Congress over more than $600 billion in tax increases and spending cuts that will take effect in January without a deal. Watch here at 12:30 pm.

Both sides need to think big. A $4 trillion combination of spending cuts and tax increases over 10 years envisioned by Democrats and Republicans as a long-term fix would be inadequate, according to a Bloomberg Government study out today. Almost $6 trillion in deficit reduction will be needed in the next decade “to make a minimum down payment that puts the nation on a sounder fiscal footing,” the report said.

Also today, the FDIC issues a report on the state of the U.S. banking industry The Energy Department releases its supply and demand forecast through the year 2040. And FEMA Administrator Craig Fugate appears at a House Transportation hearing on the response to Hurricane Sandy.

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