'Plan B' Fails, Stocks Plunge

December 21, 2012 7:28 AM EST
U.S. stock futures are sharply lower Friday as progress in a fiscal cliff resolution took a step backward... or two.

Overnight, Republican leader John Boehner's "Plan B" budget proposal failed to get support from his own party, resulting in the bill being pulled without a formal vote.

S&P 500 futures are down 21, Dow futures are down 165, while Nasdaq futures are down 39.

Plan B was being sold by Republican supporters as a plan that would not increase taxes. However, others saw through it and wouldn't throw their support behind it.

Boehner threw the ball back to President Obama and the Democrats to come up with a resolution. "The House did not take up the tax measure today because it did not have sufficient support from our members to pass," Mr. Boehner said. "Now it is up to the president to work with Senator Reid on legislation to avert the fiscal cliff."

The continuing drama leaves investors and the general public wondering just how big the impasse on the fiscal cliff talks is and if a deal can be reached in time. Right now it looks larger than expected, pointing to a falling-off of the cliff.

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