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Percent well joining us now there was -- -- whether that's a likely path for the markets to follow Charles Schwab chief investment strategist senior vice president -- that.
-- began with a flows and I let this.
This was a fairly impressive sell off what do you make up.
But I think yesterday we had two major uncertainties the dominant one being a fiscal cliff may -- they -- the less dominant one but most front -- was the election itself -- I think there was some hope that once we got the results of the election.
That we have greater clarity on the big uncertainty which is the fiscal -- And I think what the surprise was is that we don't have any more clarity because I think.
Very few were expecting a true status quo election and that that's what we got so I think the market is -- belatedly digesting the impact of 88 continued standstill on this on this -- -- The idea of removing uncertainty in the market should be very careful what I vast foreign right.
Because now that we have clarity it's it's clear that there are some policies that Wall Street and to investors -- large disagree with.
It's also -- that this administration's gonna press ahead with its agenda.
Which rule which means we're gonna see some higher taxes and significantly so.
Well maybe they're gonna attempt to press ahead with their -- -- agenda but also if you listen to speaker Boehner Angeles many of the house Republicans -- -- weighed in.
They're also -- their heels -- on the on the tax -- so.
I think there is some low hanging fruit in inside disk amalgamation that is the fiscal cliff.
Including naked attached to the Alternative Minimum Tax which was -- -- and -- you know another few million that taxpayers.
And also we should say middle class taxpayers now cost taxpayers absolutely it's been you know slowly creeping down into -- lag to the middle class.
And that I think the sequestration to some degree.
Is a low hanging fruit to see you may be able to take some pieces out of the fiscal clip.
Have even possibly a lame duck adjustment made to those the problem is.
That if the bush tax cut pieces and decided in that part goes over the cliff even if it eventually is fixed and made retroactive.
We don't have enough cushion in the economy.
To offset the the impact that that is going to have and that's I think the increased risk of a recession as we look into early 2013.
Was also ahead on the market today.
-- thirteen do you believe investors that these markets have sufficient confidence in this president.
And this senate and and congress to go into a period whether -- it's six months rather it's nine months.
Of deliberation and hard effort.
To actually reform the tax code.
What do you think the market reaction would be if they were to be -- a thoughtful.
Approach through tax code reform not one of these ninety day -- -- It would be a huge.
Boost not just to the market -- to taxpayers to businesses I think it would be a huge boost now.
I have -- somewhat personal bias because I sat on.
President Bush is bipartisan tax reform commission in 2005.
The whole notion of needing to do this is very near in gear from my heart I think there is bipartisan support -- -- as opposed to -- short term fixes.
Whether we can actually move down that path as a different story but I think that would be one of the biggest positives.
That could come out of this is if on the tax piece we tackle it -- a full on reform as opposed to piecemeal approach.
And -- -- -- were -- we're trying to run a 9% decline in the market after.
The president selects.
The day after the president's election in 2000 made a two years and what do you see in the next few months as we I would.
I really don't I don't really see a circumstance like that we have the entire global financial system in free fall at that point we -- at the very early stages.
Of the crisis and I think we're we're largely on the -- now in terms of the financial part of the crisis actually think there are a lot of coiled springs an animal spirits.
Waiting to to bubble up I think a lot of the effect of this fiscal -- to some degree.
Has thirty started to happen and has been happening at least in the impact it's had on businesses and their willingness to invest and spend.
Whether we have any near term outlook for -- that that valve clearing is a different story but I do I do believe that there is coiled spring here.
Right coil spring on the mend.
Almost where I hope I hope those loans Saunders thanks so much for the next -- --