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Leeb Capital Management CEO Stephen Leeb on the economic consequences of the fiscal cliff.
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Halftime and to hear economists tell what we're running out of time.
More -- unless congress acts before January 1 -- -- -- fiscal Armageddon.
We're hearing warnings about the bush tax cuts expiring the payroll tax cuts expiring jobless benefits expiring.
And automatic spending cuts stickiness.
But here's something we're not hearing.
So what I say.
Why -- we think about gold over the cliff I wanna see what happens I'll bet it.
I'll bet it won't be so bad.
But we won't know until it happens so.
Let it happen economist David Lee says I'm going to be eating my words of fiscal cliff is a major deal Steve and I -- you think I'm nuts everybody's all worried about this that.
Tom let me first of all I was a kid nine years old when they asked -- to jump off the high dive -- I got halfway up the ladder and came back down I I don't wanna go off any -- especially in what we've done over the last four years you look at 2008.
The same clowns running our institutions are baking institutions.
Our our our insurance institutions those same clowns are still running them I know another even -- -- -- let's let's penalize a movement now there's two parts to this -- you wouldn't be in our taxes in the economy.
And all that I wanna I wanna address that in -- second but first.
We're gonna be slapping in the hands of Washington and -- and not palladium touched the purse we're gonna be cutting funds to them so much.
They won't know what happened -- I'm all for that and I'm all for throwing the whole bunch of them out okay get rid of them.
But don't drop the baby with the bath water.
There the problems elect somebody else but I don't want to wake up 1 January 1 and I'm I'm you know and find that they don't accept my credit card anywhere.
And find that I you know can't tell you know putting groceries.
-- -- this is this -- one of those guys that goes I wonder what would have happened if they did not do TARP.
I wonder how many banks would have failed which should have failed to let them die could -- -- -- -- Very very good point I I I definitely agree that TARP was a lousy idea and they should not have done it but it depends what they would have done instead.
If they it just let everybody go flat broke.
Came over.
If they had found a way of dividing those banks up and making them honest institutions.
Very good I have no confidence that the clowns we have Dow.
In Washington are going to replace the clowns we have now running these credit finance.
Well I'm alive but what we agree on that listen there's another part of this and that is you know the studies have been done for years about the fact that taxes are generally.
Eighteen to 20% of GDP so they raised the rates.
And people find a way to -- -- defer their income -- -- -- is and they don't pay any more.
They lower the rates and people start doing more business activity and they pay more right so that's I'm saying is that when that if if our rates go up so what you're gonna figure out away.
To not pay anymore taxes.
Right -- I don't that the the issue is I yeah I agree there's so many are loopholes and everything else.
One thing this country has to do basic business take a lesson from.
You know main street.
There's a difference between just giving away all this money Nancy Pelosi got nearly a trillion dollars from Obama and she just gave -- -- -- -- all her friends.
Now that's one past the other path is to take whatever money we -- get from higher taxes and in best fit.
That's the thing that makes sense that's what makes.
-- was his I know I invested in highways invested in energy there -- so many ways of creating jobs in this country but yes it's the waste that's killing them.
Of this country and we are the government by and for the people.
I want them to say you don't you don't get as much money from his anymore.
You know how I -- sympathize with you know your frustration and your feeling.
I mean it's just -- I am so scared that there is nobody around that will know what to do if there's a real crisis what had -- What happens on January 1 of that if nothing is done and I I predict.
My prediction is that they will go to December 30 about getting -- not New Year's and they're gonna kick the can down the road a couple of.
There's no doubt I mean they can't make a decision to save their lives.
But there will be a crisis -- I don't know what it would be some time hopefully.
Very soon within the next six months something will -- China will corner copper are some -- single happen.
And maybe that will wake up America woke what -- -- what way are.
-- January 1 of 2000.
And with Y two K and guess what nothing happened -- -- happen yes but this is not what -- two KY two K was that joke.
This is like 2008.
We woke up sometime in October 2008 and we found that we were ready to blow the whole shebang.
And the same clowns like keep coming back to the statement I can't believe I know that the same -- that -- they're they are there now I wanna slap them.
I they should be slapped and -- and put in jail what.
-- we put all the guys from 2002 and three in jail what's wrong with that you know.
Punishing these guys are wondering -- -- -- result of the Barbara just -- session said no no criminal charges so well I mean you don't that's one of the things that's wrong.
I mean we've got to get tough and we've got to realize that we use.
That -- -- the bankers would that is to be anybody but the American pilot get a I want to -- I wanna get -- with Washington -- -- -- -- -- the same we're on the same page as far as getting -- with -- all right let's see what happens the OK thank you so much for.
