New plan to push back fiscal deadline
Worries grow about a delayed recovery
- Duration 8:08
- Date Dec 1, 2012
Worries grow about a delayed recovery
Also in this playlist...
This transcript is automatically generated
Month to go before our financial.
DC is still stuck in a stalemate.
Now new plan is emerging to buy more time -- passing an expansion and pushing the deadline back.
Job creators and slamming IDF says it will do nothing to kill uncertainty and could -- -- any signs of -- recovery so why -- someone -- certain.
It will work hi everyone I'm Brenda -- and -- is Bulls and Bears -- You do -- -- week.
Gary B Smith Tobin Smith Jonas Max Ferris along with stuff and -- and Larry Glazer welcome everybody.
Okay Larry you say to -- That's right that's right -- You know -- given the choice between a lot of millions of jobs -- dig deep and severe recession.
Or delaying -- deal in hopes of getting meaningful spending cuts and watching him that -- -- this problem.
The kind of spending that would cut the -- billion dollars of additional debt that we're getting every day.
That's how it fix the problem but the long term not -- a short term to prevent being back in this place a year from now that's gonna get the country.
Back on -- they don't get excited but I know Gary he will be as well Gary -- what.
Though this short term and -- I mean short term it's been long term we've been going through this part -- years Washington not doing anything what does that do to the.
Well I think you see what the stock market Brenda everything is pretty much frozen look you cannot.
Pick up a paper our paper or look on the Internet and and see fiscal.
Crisis everyone now is focus on and I don't care -- inside the beltway are outside the belt like.
88 and it does a couple things that we don't skip passes deadline and I agree -- Larry in principle.
But the fact is if we don't get past that deadline people or one get a view government -- totally -- apt or more right now than it is right now.
This is this frees up because they're afraid to do anything it's unknown.
Any ineffectual freezes up look.
Who's going to be out there actively investing actively looking for work you just don't know what's gonna happen with all that we need to get something done.
As bad as it might think -- -- candidate -- monster to really make a difference at some point they're gonna come up with some bank.
-- a threat and I think a month or -- probably okay but I'm with -- if they kick this thing back a year.
It really confirms the market's worst suspicions which is that we've got to congress that has absolutely no functionality whatsoever they're really well and truly broken.
And and bad and I'll be really disturbing to give back a mother to letting a new congress come in.
I think the market could stomach that I don't think the market wanna see is actually get back a year or two now -- now.
It -- the deal -- I'm out we kicked the can we kick the can we kick the can and narrowed is a highway.
Essentially if we never cut spending.
What's the -- there.
Well that's the worst outcome because you know a trillion here trillion -- it's -- -- up number one but number two.
We are the world's greatest can't kickers in the distant planet so we are pregnant just can't down -- down the road that's actually you know politically.
Though the most workable and and -- -- -- you know is if there is -- a question about dysfunction in hearts into.
I got already priced into the market which is not priced into the market is this stupidity that they're gonna brain when this deal to settle down payment and turns and the whole deal.
And then it's going to be held -- but we know as I said before this is you know.
Lucy and then Charlie Brown who football's going to be pulled up -- -- -- -- Arab talk us and then they're gonna pass some little thing you know to.
Move it down six months copies in those technical term benefit Jonas pushing back the deadline.
What do you think it means to the economy especially since we don't know -- it'll be you know.
A deal -- -- month or a deal to do a deal it another year.
There is actually no good at this point in pushing along the eggs the current system and waiting to fix it later.
Yet no one wants higher taxes but we're not in a deep recession right now we actually are gonna die if -- if things -- to change.
And in fact he -- real problem which is the growing deficit.
On the path to Greece gold gets worst the more we kick the can away.
That would become the overriding problem not the slow economy not people not spending money.
But I -- that we all of a sudden can't get out of and in our interest rates and goes off the handle normal lend money to us Charlotte might happen in the first two months next year but that will eventually happen if we keep kicking down the -- so there's no we want -- -- the world that we have a solution out.
And it'd -- if you want to get -- we have a little higher taxes for -- big deal we'll get -- get there but that's got to be the plan not just the same nonsense.
Can't -- but Larry I'm adding that that's part of your point but.
You know -- says we're not in a bad recession we're certainly not in a good recovery and if we just keep falling.
Little bit by little bit maybe it's -- as jump off the -- but it's certainly a slippery slow.
Right at the damage is already being done we're already seeing uncertainty we shot corporate earnings recently was -- November -- just as we're seeing companies delaying activity already.
And we know the ratings agencies -- minutes from downgrading US -- we're better off getting the right deal to fix this problem in the long run then making a -- -- short term deal that doesn't fix anything for any of us it doesn't get a recover.
-- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- Not gonna like that but Gary B I mean.
It will there really have to be a gimmick what the president doesn't have much to lose here he claims he won the election gets what he wants.
And if the fiscal cliff if -- -- over it just blame the Republicans.
Well a -- -- I think there will be a gimmick and that's unfortunately the way Washington works these days you know Larry.
Had a phrase he said meaningful spending cut is how we know.
That there's not going to be any meaningful spending cuts is not going to be -- -- both spending cuts three weeks from now it's not gonna be there three years from now so let's just at least.
Did over the psychological.
Hurdle of the fiscal left.
Move on him put some band -- together and then.
Hopefully the next group in there are minus Obama starts to cure this for years from now because nothing's gonna happen next four years good.
But -- that can't.
So maybe we get through this fiscal club but then another fiscal cliff comes -- that's the whole point of -- us.
That well in fact actually an -- and there was -- -- There was a proposal this week -- to try to get rid of these fiscal -- and and and not no longer give congress full -- to off to extend it debt.
But I think I'll tell you what I'm kind of curious you get -- I think I actually think we're going over this fiscal -- because I think congress.
Would much rather have us go over the -- that and then.
Vote to lower taxes and increase spending this is what these guys love to do they can't bear to raise taxes and reduce spending what I think that's where we'll end up in three months what we'll have a vote to lower taxes and increase spending.
-- what does that do in the short term.
And I can't talk up on I think our presidents as guilty as everybody because they're scaring everybody about this -- we got to keep pushing auditioning or the -- -- and it's really not as bad as the politicians are Britannia -- is even.
If -- is not a good thing but we're getting -- -- to a level where it will be worse than the actual real effect of of having tax increase basically the spending -- on the government level.
And that's the danger -- uses a tool to get their policies -- both sides are doing is.
Trying to scare the way they're gonna call it's into the first recession has caused my -- -- ourselves into it essentially I mean -- people scared -- didn't didn't fit into the hands if we let this happen visits to become -- -- upon prophecy I can't tell -- final word here.
Yeah you know we've seen this movie before we know how it ends.
And you know at some point it's sort of a tragedy -- the United States and agreed to vote in these good dudes out -- we reelected Libya.
Path -- that's I guess were partially to blame all right yeah first.