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We know it is not the super committee say that really worries Bob -- is not everything else that's not getting done because an interest just alluded to some of those examples the BlackRock chief equities strategist says.
-- that would be the real drag next year if this is just a drag right now the continues.
Robert always good seeing -- thank you for coming.
-- -- -- -- As a diet and that's money and then the president mapped out investment strategies.
How much of this is noise how much of this is real.
There's no question the expectation by most was that these guys would find something not necessarily trillion -- it you know few hundred billion maybe.
Out of the trillions they have to choose from and you know looks like they've found for the moment nothing.
That's not great news it just shows the political -- anchor the acrimony that exists.
Now -- laundry list you just went through.
None of that necessarily.
Was expected to be part of the debt that issue that seems to be failing.
Attached to -- would have been nice but we still have the hold that in December the essential parts of that will luck will come back before.
You know I'm beginning to wonder though about -- it's it's -- already hearing that the back up plan that the president was bragging about about 1520 minutes ago.
But look we have in place this it is sequestration these automatic cuts that it can't.
But there's already a move afoot on Capitol Hill among those in both parties including two prominent Republicans on these defense cuts.
-- -- -- that orchard tried to as soon as that goes into effect reverse them another words deed key thing for lack of a better expression.
The very seat that we thought -- there what do you make -- And there's no question some will try to do that there were against all this in the first place on Wall Street think of that.
So I think what Wall Street it needs to see is are the ideal world for Wall Street is.
Some stimulus that keeps the economy from having a collision with.
The fall -- of these benefits January 1.
And some long term -- -- reductions I think depends what else happens.
Is the answer to the question -- and you're right we just keep kicking can down the field keep kicking the can down the field.
The -- by doing that is.
-- S&P was more let's confirming today it's something that's why we acted the way we did.
And by the way why I guess it's still out there is a possibility Moody's and north its investors.
Follow suit how likely think that is how much of the worry is that for you.
I think as long as the and in the budget's gonna get cut which it is unless there's a change may -- just as alluded to.
The -- -- it's a change.
There were the expense reductions will still happen.
Just not the ideal way the ideal way would be Republicans and Democrats coming together showing some leadership and saying here's what we came up with instead it's gonna have to be -- the board.
The rating agencies will settle for that.
Here's what I'm wondering about if you take about about today if there was this typical.
And then we talk about cuts but as -- pointed out we're not really talking about cuts -- just curtailing the growth in spending a lot of program correct and here it is the best of piecemeal fashion.
And a very conservative -- someone puts -- one point three trillion over ten years even with these so called draconian cuts of both sides bemoan.
We're still gonna 93 dollars more in debt over ten years having said.
If this is tough.
What about the decisions that are going to have to be.
-- it's it's really difficult politicians.
Rarely do the tough thing until their backs -- to the wall and again as you know two days or Wednesday's deadline to be technical.
Was self imposed nothing to do with a debt ceiling nothing to turn the rating agency the day will come and go in a won't matter.
Different from August -- if we had we not -- we would ahead.
The problem of a debt to -- we're we're we're not there at the moment we -- actually right we've gotta tackle these big things the sooner we do -- the less difficult it will be.
But unfortunately politicians have a good history of acting when backs -- to the wall on our -- I get to the wall.
And Wall Street has a history of just.
Sort of selling all for at least not moving forward in times of uncertainty in now -- -- Washington is just going to be a big question -- We don't know what's gonna come out of Washington it's very likely for the next 1214 months we don't see editing done period as they wait -- the election.
That variable -- -- -- Wall Street deal with that or is it factored that in our.
I think part of its factored in look there were not her after all gets there weren't very many good expectations about what would come out of this weekend.
Unfortunately whatever expectations we had that was the very low end.
I think that -- certainly will exist and that's not good for markets as you point out the issue will become how's the economy doing and as you know there the news has been better.
Second quarter growth was faster in the first quarter third was -- in the second looks like the fourth.
We faster than a third so the US economy is not doing great but it's doing a little better.
So at that steady as she goes economy could -- he's being steady and moving on that that trumps whatever of not.
-- -- -- -- I think that's right I'd put it we haven't talked about Europe's the first place US economy second and this.
Debt nonsense of -- called that for -- and third place.
We're gonna have some reporting from the dreaded a second where they toppled the government -- that that is apparently now with the new guys coming in at very very serious about.
Making some cuts others have promised the same but this is the third government.
That has has it -- has been promised -- north switched out in his in his many what weeks right.
So I'm I'm wondering what that signals whether you think Europe is showing some some backbone or this is just again -- -- But it it the Europe is finally beginning sort of October 1 recognizing they've got to do something.
They've done some things they've had some setbacks it's not going to be a straight line.
Our view is about Germany in the ECB can they come together and give the medicine that we all need to -- to cure the patient.
Only time will tell.
Pop up one final general question simple as a maybe not a Barbara Walters question but a simple question.
What is your mode right now what is your -- your view going forward upbeat mixed wants.
Hey it's that -- makes -- look at we're we're like what we see in the US economy.
But scared about the things going on in Europe in the Washington DC stuff.
I can't say we should be surprised united surrendered -- have a great Thanksgiving yourself you the same.
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