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KBW head of Washington research Brian Gardner weighs in on the budget battle and his outlook for the primaries.
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-- -- -- -- Well President Obama using this Republican primary data go on the attack against the right in budget.
And to push for the so called Buffett tax on wealthy Americans that tax increase -- need not -- -- On your investment income the president will be speaking to newspaper editors as an Associated Press convention at the bottom of the hour.
We're gonna take you there live when that happens -- looking at some tape of mr.
Buffett and the president at first.
Let's bring in -- Brian Gardner have watched the research for KBW -- president expected again to make this huge push.
For an increase in investment income didn't just -- consumer.
For market participants for up for higher income earners that this is actually gonna go through and happen.
No -- think yeah I think most investors think that that's off the table for the election season they're expecting a vote on it at some point I think Harry Reid is signal that pretty clearly.
-- -- that -- gonna go down if there's no way gets through the House of Representatives.
This is just a political issue -- political posturing going an election and has no shot of passing and most investors know that.
Let's talk about the then the other issue that's gonna come up obviously -- as the Ryan budget plan in many investors frankly have been especially.
Lot of money managers concerned about deficits.
-- Paul -- comes out.
Fine does a have a chance of passing probably capital is that the we've gotten the discussion going.
On dealing with with the deficit reduction problem in this country what do you think the market we would like to cease day.
Out of the Ryan budget because the president generally using it I think -- -- moment here to go after him again.
-- -- -- I think what the market would like to see is a realistic kind of adult type talk on the long term fiscal situation.
I think they're not expecting at any time soon I think you know again kinda like the budget the and -- the Buffett tax.
The idea of pushing it past the election but I think they wanna see some consensus start to emerge -- we're tax reform.
And long term budget reform is gonna go they're not gonna get a for the next couple months but there there are elements of the Ryan plan which is.
In a way a slower trajectory on on federal deficits and and the federal budget debt.
Remember Ryan does not eliminate.
That the the overall debt I mean 3040 years down the road to the US is still in the red so and I think that the White House is going to two.
To use some for a fairly on.
Strong language in in criticizing it but at the end of the day when you look at the Ryan budget it's still doesn't balance in a couple of years of anything maybe the Ryan budget doesn't go far enough.
-- had you on several primary days now we've talked a lot about Mitt Romney being kind of the assumption basically the candidates reports that Wall Street is backing fair enough.
But today's seems to be a key moment for Gingrich for Santorum.
-- Do you think that Wall Street is a little nervous about the fact that may be Mitt Romney might run into some -- -- that tonight no.
-- I think I think the consensus is that the erases just about -- that today is going to be another step forward for the Romney campaign.
And that people are -- -- an extent they look at the primary calendar they're looking towards three weeks from now the 24.
When died Pennsylvania and New York Connecticut Rhode Island -- that's that's I think santorum's last shot he has to win Pennsylvania that day.
Mom and but it you know he doesn't when it convincingly.
The the over the other states we've discussed -- and and and DC being today as well.
-- you can -- -- sweeping the table but for Pennsylvania.
All of those two dates and it's it's basically over.
All right well we shall see what happens tonight obviously we're going to be taken the president's comments live in him calling them right you know.
The Ryan budget plan a Trojan horse that's expected to be mentioned today that President Obama -- our earning season business balances summit on.
Head of watching your recent -- KB heavy Brian.
