>> suddenly the iscal cliff is the number one threat to the market. forget to recession, we are back into housing market crisis, no doubt about it by the way, if weon't sole the fiscal problems goin forward, we have an interest ras by kenaf future. so out. gerri: we cannot win for trying. >> exactly 56 can't win either way. other people talk about the possibility of another recession . i guess you could call it a double dip. it does not feel like we ever t out of thelast. do you see receson as a bi threat to the housing market? >> not if that this booklet is handled proprly. if we have a huge set of government spending cuts and tax increases, certainly a recession would be a problem for the housing market. on the other hand to mouth we have to be careful not to trade one set of tax hikes for another. you mentioned mortgage interest reduction. a huge mistake to limit the mortgage interest deduction upon when the housing mket is providg growth for gdp. gerri: but it could happen. what would be the impact if the mortgage deduction were taken away, say, f

there hasn't been any movement at all during the election on f sich iscal cliff.big problem for markets, business and global growth. the eu president made comments about concerns of unemployment in the european union. there are concerns about europe's growth and stability that's weighing on investors' minds this morning. john boehner will have a press conference at 3:30. that will be very big. >> laying down a marker. >> that's right. and what the president does in response to that is critical. what the gang of eight do with that in the senate absolutely critical. and what the house is going to do to get this fiscal cliff fixed, to overuse the word. it is huge, huge spending cuts. saul at once with huge, huge tax increases. every family would see their taxes increase $3,500. it would mean a recession. everyone wants to avoid that. >> it's status quo everywhere, in the house, senate and in the white house. does that not provide any confidence for investors? >> they need to talk about real debt reduction and spending reduction. they still have this big problem of sp

iscal cliffar. ath the fiscal cliff looming it has come up now for discussion. a look at how that could affect home values and your taxes. ing. morning. >> good morning to you, norah. families tak one the mortgage interest eduction on their taxes each .ear. those families see an average how it n of about $2,000. so here is how it currently works. families making less than $40,000 a year see a tax savings of about $100. families making between $40,000 ave $75,000 save $542. weenlies earning between $75,000 and $250,000 see a tax savings ytween $1,200 and $2,600 a year than e highest earners making more than $250,000 see an average savings of about $5,400. to raise more revenue, congress newonsidering multiple new plans. pl administratiministration's plan, thamily making more than $250,000 would see their 28%uction cap at 28% rather than fhe current rate of 35%. ter the next ten years, that rould lower -- rather increase federal tax revenue by nearly $600 billion. critics argue that lowering the cap would hurt home values, the cularly along the coast here the pric