Hope Fades for 2012 Economic Rebound

For a while it appeared that 2012 would be the year the U.S. economy picks up momentum, but those hopes are now all but dashed, and the outlook for the future is darkening, according to The Economist magazine. Automatic spending cuts and tax increases equal to 5% of gross domestic product a year kick in at the end of 2012. "This all gives firms a powerful incentive to postpone hiring and investment until the resolution is known," the magazine notes.