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Former Verizon Wireless CEO Denny Strigl on the potential impact of reaching the fiscal cliff on the markets and economy.
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Denny's you don't have a former Verizon Wireless CEO who's been worried about that is slow but -- a lot of is that corporate brethren.
A Denny play that out and they don't reach an accord by December 31 what happens -- deal first of all let.
Let's take a look at this issue and Steve just said it.
We've got a massive tax increase -- repeal the bush tax cuts we have the Social Security tax that's reenacted for employees of 2%.
We have that over trillion dollar spending issue that.
I mean the the impact of the economy on stopping the spending of a trillion dollars is about 5% of our economy -- -- the markets to.
Well it that it -- -- very concerned about what the markets -- -- because when you look at who had stock prices today.
The fiscal cliff is not yet built -- they don't even ten that's a possibility and I think the closer we get to it that it could date.
The more they start getting -- Well no I'm I'm again I'm I'm very concerned about that yes -- -- for sure.
And I don't think that we're going to get a solution to this thing certainly before the end of the year.
You don't even by a six month extension going to buy and I don't know if we do we get a piecemeal solution and very good why are we gonna stop looking at this thing.
In bits and pieces this is not what leaders do.
Leaders are decisive what leaders have always done -- Washington in Washington may have -- is not what you see in the business world.
There's no CEO that would sit still for this and what's happening we have no white house leadership today.
We have the Kim -- and chief.
How -- -- we I don't have much leadership among the Republican leadership in Washington they talk a good game on this but when they have a chance to follow through on this they don't spell it out.
Or or or or push strongly enough for the type of things we haven't we when it comes -- -- sequestration cuts that they agreed to.
-- they're now trying to change the rules on that so I think a pox on both house and that Neil I -- I can't disagree with you here but I would I would ask that you were audience to.
Think back.
To win Barack Obama was running for president.
He ran as a uniter he was going to make things happen get things done and didn't and the fact of the matter is it didn't happen.
He's the great divider -- as a CEO someone who knows what does that sit down at a table.
And Arnett DR I don't feel very sit down into the month to -- -- someone -- last night but but.
Do you think that they can -- accord that that would.
Please vote -- Republicans will never budge on a tax increase for the upper income.
And Democrats presume we will never budged for even -- it loses -- just trying to -- in the growth of entitlements so there we are.
-- of course they can hammer out a deal here if it takes negotiation.
It takes leadership that's what they are -- how sides argue that it -- -- they're gonna have.
The convergence after the election because then.
That's it that he -- over the election's over there's a time to adjust but cooler heads prevailed.
And whoever wins didn't you know what -- that's unfortunate because we're on the brink of another recession here.
-- if we don't resolve this fiscal cliff that's exactly where we're going so.
You concur with the comments in this could slice -- -- percent of GDP which by the ways.
Our GDP down percentage.
-- so it one point 3% I think you're negative it it has long last absolutely have so there's no doubt in my mind we have to get this resolved.
It's also a reason we're not seeing the kind of consumer spending we need to say.
So using that would be stronger through with the deal was more imminent.
If the deal was were imminent and protecting small businesses would start hiring again.
Everybody is worried about where do we go with us how do we resolve this and you see that businesses.
And consumers.
Are waiting to see what happens.
We have but.
The moves -- wants to hold -- breath.
It's a long drugs and older dentistry -- thank you very much of great.
