NEW YORK ( TheStreet) -- Sometimes there appears to be more turbulence on the ground than in the air. Right now one of the most turbulent subjects is the federal government and the question of the U.S. fiscal malaise.
The nation's monetary policies are entrusted to the Federal Reserve. On Tuesday, Chairman Ben Bernanke urged Congress and the Obama administration to strike a budget deal to abort the looming possibility of tax increases and spending cuts that could lead to a recession next year.
Without compromise and a series of legal deals, the dreaded outcome often referred to as the "fiscal cliff" will take effect come January. Uncertainty about all these issues appears to be discouraging spending, new investment and troubling investors, the Fed chairman said in a speech to the Economic Club of New York.
Putting an end to the fiscal crisis would prevent a sudden and severe shock to the economy, help reduce unemployment and strengthen growth, he said. "A stronger economy will, in turn, reduce the deficit and contribute to achieving long-term fiscal sustainability," Bernanke told the group.Sounds like Chairman Bernanke is turning up the heat on lawmakers and the President, and putting all investors on notice the economy is already experiencing turbulence. This may be code for "when the fiscal cliff threat is resolved, the Federal Reserve will open the monetary spigots." That said, there's good news for investors who hold or want to buy shares of Honeywell (HON - Get Report). In a recent video released by Bloomberg, we learned Honeywell has created a radar technology designed to save the airline industry a fortune. Bad weather is responsible for 70% of cancelled flights, costing the airline industry an estimated $8 billion a year. HON's new equipment will quickly detect severe weather and its concomitant turbulence, thus reducing the associated dangers involved with sudden, unexpected encounters.
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