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WaPo: Economy Gaining Traction

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    Former CBO Director Douglas Holtz-Eakin on the Washington Post’s views on the economy.

  • Duration 4:36
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Again I wanna get back about Washington Post headline.

Which -- -- a splash with those -- this is first first front page by the way.

The economy might be gaining traction new data suggest.

How about -- half full was CBO director Douglas Holtz -- is in DC.

Let's clear the air shall -- you are not affiliated with the Romney campaign we got last.

Now part of the air about the front page Washington Post that looks -- -- like putting some.

That the most desperate positive spin on the -- the a -- and that's possible in any way shape willful ago.

It's certainly an optimistic reading of the data at -- I -- at best we're going sideways.

And there are.

There are a lot of us well known risks out there -- as you know the global economy slowing China's slowing.

I'll we have this enormous fiscal cliff -- -- the end the year fiscal shock that's it 640 billion dollars and no real plan to get to avoid it and I have some deeper concerns about the one place where we might actually get some upside helped -- -- housing market which.

Don't nationwide is is really starting to look like it's at the breakeven point -- we we got a chance to go up and and we're now seeing this new Consumer Financial Protection Bureau put out.

-- new rules on mortgages new rules on mortgage servicing.

You know a 1099 pages today and doing it too much overreach on that it's gonna paralyze the housing markets again and and that's bad news that's about that is the place well.

Doug -- that is interesting because I think.

There is something of a bottom in the housing market and -- very modest upturn so my -- of Fox Business disagree without but -- I think within the bottom.

You're telling me that.

That the yeah Elizabeth Warren's consumer financial protection -- essentially.

Is stamping on this with a whole bunch of new rules which will made it makes it very difficult to get a -- I might -- might paraphrasing that correctly.

It's a real concern I think you know we've seen the housing market sort of start to recover in the past and then -- fourteen new or mortgage refinancing programs have administration every time something comes out.

When it's -- stop think the housing market sinks back.

And and now we have another version of this which is these new rules for mortgages themselves and for.

Mortgage servicers up the quote was a wanna put the service back and largest mortgage servicing.

That's -- 11100 pages I guess.

He I'm worried that this is the wrong thing at the wrong time.

And -- the housing market I agree with you I think we're seeing if you look nationwide over 300 housing markets.

We're now seeing.

Close the 15% of them above the the breakeven mark gone on housing starts on jobs in that area -- you -- on prices so we we have a chance to see this happen.

Give a big picture for a second I'm an englishman originally lived in America -- close on forty years when I think of the American economy I think dynamism.

I think a robust private enterprise not come flat sort of attitude go get that's -- that's when I think of as America.

My perception of America recently has been almost the exact opposite reminds me more of Europe.

Slow growth big debt rising taxation levels how do you see it.

I'm very concerned about that because.

We do have these the slow growth big debt problem the numbers can't lie where we're growing and under 2%.

And what we're supposed to and recover for three years.

And that the debt now exceeds the size of the economy and if you look historically -- big picture.

The successful playbook -- those circumstances is keep taxes low reform them to be more pro growth.

And then control spending in particular transfer programs which in the US are entitlements.

And what are we doing nothing on tax reform presents problems and raise taxes no -- of -- reforms we've got this all wrong from big picture -- you know.

Bill O'Reilly on only show last night says look a hundred million Americans get some things some kinda help from the government that does that does not include Social Security -- doesn't include ready -- A hundred million Americans -- Of the population.

That is Europe flat -- that's Europe.

I.

I share that concern I mean that if we are going to deliver to the next generation what Americans have always delivered an economy larger and stronger than what they inherited.

And a country that secured has a strong national defense how we're going to take some fundamental changes because what's happening in the federal budget right now.

Is these large transfer programs are squeezing out everything else.

And the debt is damaging the economy so we need to.

Take take this moment and change directions to restore the American dream and your impression when America should be and could be thank you.

And Doug Holtz -- always a pleasure thanks for joining us thank you all right the crop.

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