You're watching...
Moody’s Chief Economist John Lonski on the economic issues the Administration needs to address now that the election is over.
Also in this playlist...
Auto-advance: ON
Auto-advance
This transcript is automatically generated
John -- he's the chief economist for Moody's capital markets' John I've got to believe you are also were impressed that -- moving quickly to at least to address -- I in his east room.
Remarks.
Well I would get get my hopes too high in all likelihood it just gonna be more of stagnation.
And Malaysia definitely unless the administration takes a more positive approach towards promoting growth.
-- -- what would that be.
All for one thing they might -- -- pull back on regulation.
They may want to pursue tax policies that are more supporter of growth.
But the first order of business.
Is to resolve these issues surrounding the fiscal clip.
In a manner that is going to be.
Constructive for the US economy -- -- -- reason the market is selling off here all that's just one reason I think there's other reasons.
Related to the fiscal -- the market is very much interest did.
In the manner in which we might resolve the fiscal cliff will it rely more on tax hikes war.
Spending cuts he would take that issue -- always absent something like that without work.
I think it would work yeah I think it has a very good chance of working but -- elected as the market is still very much concerned.
Above what regulatory policies are gonna look like in the years ahead Arafat -- -- as -- as they really to energy.
Well the Congressional Budget Office and they renewed more warnings on the fiscal -- we're going to be hearing about the fiscal cliff where folks.
Every day from.
Now tollbooth -- to resolve saying the United States who -- a half percent contraction in the economy next year.
Are you for your over the cliff on -- -- surge above 9%.
I mean what kind of idiots.
Do -- have in Washington that would not have already resolve this issue before the election.
I very much hope that's going to be the -- quite frankly you know this latest slide by equity prices could prove to be quite beneficial.
If it prod Washington into taking.
Actions that would prevent the US from going over the fiscal clip as far as I'm considered.
I'm sitting here thinking of people working at their forward things -- run Barbara privacy -- resist -- adopt.
I'm I'm contributing toward rationality and a sense of responsibility of Washington -- not only -- resolved yet but that's how markets behave.
And their writing right now markets are behaving in a very rational manner.
They're basically gonna move lower until policy makers in Washington cry uncle.
Out of there fear out of the fear of their long term employment and I am assuming.
That -- putting that date for -- to recur somewhere of this side of till hell freezes over right yes yes I am but I mean ally -- -- it's going to be it's gonna be a painful waiting you're not what -- would -- Looking at your 401K.
On the other hand as markets move lower that's -- Business and consumer sentiment and perhaps imply that the rate of economic growth the latter part of this year and going into next here is going to be quite low are.
I'm going to shock you.
For whatever reason and -- bullet meant there entirely and ends -- usual and intuitive.
We're over the -- -- -- always very.
