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It's interesting not only are politicians weighing in a former politicians are weighing in we have Fred Thompson saying there's got to get a deal that needs to be done -- but now let's get more from Washington joining us now from Capitol Hill with an insider's look at what's happening.
It's former democratic congressman from Pennsylvania Josef stack.
Joining us in a Fox Business exclusive representative -- thrilled to have you here especially at a time when.
You who had been there in 2008 during that first TARP vote that fail to remember that market fell I have a soloist seven points.
It's it's -- feel once again with this.
You know I was thinking about that this morning I'll never forget standing there on the house floor.
And there's a certain moment when you know for bill's gonna -- And all of a sudden it wasn't gonna pass and someone walked on that house floor and said the market's already dropped 600 points.
You could almost see people who should have known better wanting to change their vote but not having the courage to do so.
Today I think this vote that mr.
Boehner is bringing forward.
And He was very much as you remember in support of that TARP back then right I think he's gonna get it through.
The question is how we'll -- we didn't get a compromise.
And what you would just speaking about which can -- the markets in uncertainty for the future.
Do we do come back in six months but we come back in 2013 the president importantly didn't say He would veto it.
What He said is.
The senior advisors at least in the latest statement right would be advising him to hit and that's when I worked in the White House and President Clinton is direct Fed's policy.
We consciously put that phrase in to give us wiggle.
It's like what is happening what you -- left leaning down to joke does that mean that He went what he's a senior advisors would recommend does that actually mean that He wouldn't be totally in the end if there was.
Sort of support on both sides of it further -- bill.
My belief is that if the -- a form of the -- bill came to the president.
That had a VB six to twelve you know before the twenty elections.
But that it had mandated -- a process.
Something like a Brack commission which both the read in Boehner build do those which would mandate a committee to come up with a -- Resolution for the deficit towards four trillion dollars in law.
That that would give more certainty which is most needed to the markets.
And I think the president.
Would then sign it.
Look at the end of the day.
If it was.
There was an election 2012 He probably would might accept this to keep the negotiations going on no one should be make -- a decision now on political survivability in elections.
Please I know I couldn't agree with you more you know joke you're one of the few over who would go off.
-- here and that's why we really wanted to hear from you of course you.
You don't have to worry about getting reelected certainly but you're not gonna stick to a party line if you were representative right now would you vote for the leader bill.
I wouldn't vote for that Boehner jail but I would make it at this first going on but I would make it very clear.
That I could support a compromise look I've been out on fox before or five months ago -- And MSNBC both saying I believe the gang of six had it right right and so I would say but if it comes back.
With -- enough support.
I would vote for a shorter term.
One as long as it's in law that we would have this -- I'd like to -- go to the senate.
The other encouraging sign why I would do it this way is Mitch McConnell.
And senator Reid are still in late night negotiations those three key people here -- Mitchell and re -- and I think you have to give your hats off that mr.
Boehner has tried to affect some compromise and.
Okay but but -- The question now comes to the president has He been a little bit marginalize this entire discussion is now on the hill.
Or is that really the way it should be there was some criticism.
Of course you know people are gonna criticize on both sides with some are saying -- -- what the president might wanna step aside here but you thinking it eventually gets.
Involved back into the discussion.
I think it needs to be looked my eight critique has been that.
I believe that the quarterback needs to come out of the huddle to the line of scrimmage when the game begins not just wait to the fourth quarter.
We think it would stimulate should -- -- happened yes this discussion when when should they have started worrying about the debt ceiling but when that debt commission report came now.
The Simpson Bowles debt commission fiscal some question.
I think He should have embraced that as the simply because you said something very important earlier this four trillion dollars.
The reduction isn't some pulled out of the air.
If we can get four trillion dollars if then reduces our budget by 2012 budget deficit to 2% of GDP.
Which equates to about public debt 70%.
For the whole debt.
That is sustainable.
When you get up to 90% you watch countries like Chile and others just go overboard.
So that portrayed -- very important that's what they had to put -- -- success and I think is more use his bully pulpit at that time could have gotten us.
To a resolution was -- certainly -- final question.
Will we have a deal by August 2 -- Yes well on the debt ceiling and I believe we do or else we unravel our fragile economy at such a precarious time you've already seen credit default swaps -- which provide insurance for our treasury bonds been going up 25 basis points so but what I'm concerned about is it won't give the certainty for the longer term.
To our financial markets which is most needed of how we're going to best address that debt.
The get over time.
-- -- -- former democratic congressman from Pennsylvania and naval admiral we salute you thank you very much for joining us.
Thanks for and we really appreciate it just suspects saying you know what -- if there's a little bit more compromise He would vote for we should absolutely have the deal and people.
Do not should not be making this decision based on political careers.
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