Fiscal cliff is real

The fiscal cliff is rela and no one seems to be prepared, 

Some have argued that the contraction from budgetary policy will be $600 billion or 4% of GDP in the next year. $500 billion in defense cuts over ten years will mean an immediate decline in defense expenditures. Other government departments will lose $50 billion in 2013, and there will be a $450 billion tax increase from the reversal of the Bush tax cuts. The average middle class family will see an increase in $1,750 of taxes every year going forward. 

So we will see no action to $600 billion in one move and the markets seem to be not focusing on this. This should already be inputted in prices because there is no action planned on the horizon before the election and it is unclear what action will be taken after the election.