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Well -- slip back into recession we've been covering this breaking news for you throughout the morning obviously the CBO giving us some very frightening numbers at 3% economic loss Peter Barnes just reporting that two million jobs.
Could be lost the Congressional Budget Office issuing that sobering forecast.
For the US economy if we are allowed to go over the edge of the fiscal clip David -- point view wealth -- president chief investment strategist joins me now -- -- even looking David obviously at at that the fiscal Clinton issues for Wall Street but from your perspective.
That two million jobs that number is such a sobering headline number.
What do you think happens on the street from us.
Well I have from the street perspective mean obviously it just accentuates the risks that we face as investors and so forth going forward because.
I mean this could throw us back into recession and nothing happens positive -- the economy if this happens to have any thing.
This probably lights a fire under the car under the congress and the president to try and do something.
To avoid this kind of job losses -- the problem is of course is.
-- is CBO has pointed out it's pain now or pain later to do nothing about the burgeoning deficits.
Ultimately we'll do it.
It if anybody wants to go off -- I'm always off the -- I mean this is what the CBO says is gonna happen the deficit would go -- to 641 billion dollars that would lead though to -- recession and is a sobering number.
But yet those cuts would be put into place I mean.
What kind of shock in the markets handle because we really don't know what congress is gonna do unfortunately.
Yeah well I mean I think that -- now.
-- that's what the market is betting that congress will do something but there's no question about it if they do nothing.
That's gonna put a very what cloud on the market.
Com you know -- did today the margin -- difference between the two sides is very slight.
They're basically holding hostage the so called wealthy and saying they don't want to keep the bush tax cut to place for them.
But the interesting thing about the CBO report today is it showed only 42 billion -- just four point 2%.
Of the overall.
Deficit projected next year would be saved by that and -- -- when you think about how little that is relative to what that could do to job creation.
To business confidence report it seems like it -- very.
For reason to hold this economy -- They also address the issue of GDP a little more than 1% growth in the first half of the year but talking about -- a second half GDP about two and a quarter percent I mean that's a little bit better.
Even -- saying look unemployment will still -- percent of -- way to listen these levels.
Yes exactly and I mean what basically what it does it's also puts.
Into question the idea that we are on the right glide path we've been told by the current administration in fact things are getting better with the CBO report certainly doesn't suggest that it also puts to question whether somebody stimulus projects have really made a sense.
Real quick though I will say from an investment perspective you do say that it's risk on at this point that that -- -- should be taking a little bit more risk.
As we go into the final three months of trading for the year.
You most likely out cook out.
Out can result would be to kick the can down the road which means ultimately with a slightly better economy -- fiscal cliff becomes a glide down.
And ultimately we're gonna have more inflation down the road and people who you know -- put all the money into the low yielding treasuries because this fiscal cliff could be.
Could be burned our that would make stocks a little more attractive David dates thank you David presented at.
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