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Securities and Exchange Commission boss Richard Breeden a question was asked today Richard.
About how the markets are gonna react to this I don't know about you my -- but I -- the markets have been always under the assumption that a deal would be may.
If that looks like it's in doubt then.
While I -- I mean I'd -- -- I'd I do agree that markets think a deal is gonna happen and I suspect notwithstanding.
The this extraordinary performance by the president and that.
The smell of bridges burning I suspect most people will still believe some form of deal will happen.
As we get close to the deadline.
If the markets were to see a deal Richard -- Raises the -- -- but without corresponding.
-- cuts that they want to see.
What are they sell off on that as well.
I think that that's a major problem and I think it's it's one of the issues in the president's persistent rhetoric about corporate jet.
Owner's son incidentally I think aircraft manufacturing from -- to -- -- to Cessna.
How to -- -- over a million jobs in this country and his talk about the oil and gas.
Industry which contributes another couple million jobs to this to our economy.
-- you know we've.
For months now he's been playing that out -- seemingly without a recognition.
That the American public -- we keep citing his agreeing with him did the -- the House of Representatives.
Fairly recently that was dedicated to stopping the growth in spending not increasing revenues and so I think the market steps back and says.
There's no surprise here that the Republicans believe that spending -- to be cut and that raising taxes in on a weak economy.
Would be very very damaging and drive unemployment higher.
And that the Democrats are wedded to the concept of fairness and then at every step along the way.
Revenues have to go up for the government.
So -- I don't think the market will be surprised about that the issue will be.
-- how you evaluate the apparent fact that the presence lost control the process it does.
Those seem like to have Richard and I caught something and believe me I'm no lawyer but I have watched but you know what amounts that we episodes of law and order that I I think -- an expert.
That when the president said well you know what all just.
I'll get an extensive -- 213 was He saying that He would act unilaterally.
To raise the debt limit to avoid a default.
-- another words do something He said it it -- would not.
Do earlier today something Bill Clinton had urged him to do go ahead to the fourteen -- -- -- -- raise the debt limited this case on your own.
Let it be fought out of the courts but at least in the meantime you've extended the debt limit.
I think that's almost the worst thing He could do in terms of the market's reaction if you start.
Turning a political dispute into a constitutional.
Crisis than I think you will see a much more severe reaction in the markets so there's -- -- -- that is the biggest overreaction and the biggest mistake the president to make in my opinion.
I thought it was no I didn't I didn't hear him saying that.
But I -- -- Europe.
Well no no no no no I citizens do not do leveraging your far smart and or not I just thought I heard David commented.
It you know all extend this through I don't know whether that would be.
An operation He would do on his own or whether he'd find some emergency wait.
To do it so please don't try -- -- -- -- sites you tomorrow I saw I am not.
-- I took him and sang that He would Vito.
A sixty day or ninety day debt extension and I know congress would call that bluff so obviously -- I don't have time to take of the -- votes along and we did we don't regret to me just it.
If you're John Boehner.
And the president has ordered -- on national TV to report to the -- that's at 11 AM what do you do.
Well -- leave that to speaker -- But I don't think going to meetings if the other side isn't willing to recognize.
That their position can't pass one house of congress is is probably not very productive.
And I you know it's interesting ally I worked under President Reagan White House and and President Bush.
-- the first President Bush and you know both of them had struggles with.
With the debt ceilings particularly President Reagan and and you had then Tip O'Neill who is pretty fears about fairness issues Ronald Reagan.
Who was pretty -- about the importance of igniting entrepreneurship.
And that that required low tax revenues.
And yet we never got President Reagan never.
Called out the other side like this publicly and had this hearing -- a breakdown of this -- -- -- right you know I I think one of the issues in just getting to the goal line here is if the president loses his temper.
And loses control of civility in the process.
Then it makes getting something done that the country does need.
And that the markets -- the economy needs all the months.
All that much more difficult to but we have to remember that we own over 9% unemployment we have 16%.
Unemployed or under employed.
And instead of name calling about corporate jets we need to remember.
That there are two different visions here.
But the common interest of the American public is to reignite our economy we have very wealth and economic growth said.
And and and the yardstick here it needs to stop being political fairness.
And start be in how we best get this country back to work.
And that I think that is where these talks are going astray is that is house speaker Boehner is coming out it and that and president seems to be.
Coming out it from my.
Political philosophy point of view but rather than that we have a weak economy we gotta get back to work and back to growth.
Richard Breeden thank you very much for a friend the former observant of the Securities and Exchange Commission is and so much else.
Times tight -- -- but you were great to be here thank you rich.
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