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Treasury Treasury Secretary Geithner must have known that he would shock Republicans with the audacious demands from the White House and the debt crisis twice the amount of tax hikes than were expected.
A spending increase for new stimulus plan revenue -- spending cuts and a completely unexpected demand that.
That the White House take over from congress the power to set debt limits it's that last suggest -- that that most interest at our next guest Lenore Hawkins.
Merits his advisors found it harder and principal -- -- lot of unexpected things by these White House demands today.
Of the Wall Street Journal called it eye opening but it was that last thing that really open up your rights why -- you focus on the debt limit part.
But it's hard to see how is this negotiating tactic is gonna help bring the two sides closer together.
And to see the White House now trying to take.
The fiscal ability F for the congress to control at least -- sent to some degree take that completely away from congress.
Is rather shockingly -- -- over the years where congress -- given up more markets power.
To the presidency but this is really an unprecedented move an -- I don't see how this is going to help.
Get congress and the president -- to be working closer together.
Now most of the traders we've been talking to this week it said -- there's going to be some accommodation even people today after after the White -- -- demands say.
You know this is this is first stage early days they're they start their negotiating tactics high.
But I don't think many people thought they'd start this -- the White House would.
If this is acting rather shocking to see -- the -- Republicans for the first time.
Say that they're willing to talk about potentially a tax increase.
And then have the White House come back and say they yield now double that down.
That's an interesting technique which leads -- to believe -- really trying to work towards some sort of a compromise it appears that with this administration compromise means doing it my way.
Now again some people of evens have even gone so far rather reacted so strongly what the -- have -- -- maybe the president of the -- -- -- resolution doesn't get one that.
What happens we -- we see all the taxes raised.
Which is something he wants more government -- the more money for the government less from the private sector -- for the government.
And to the military would have to drastically cut expenditures and he doesn't seem to be too bothered by that and of course -- could blame Republicans for anything that went wrong indeed do you go that far thinking that perhaps the president doesn't want a resolution.
He's not any occasion that it's a top priority a top priority you would be trying to work with the other side and understand.
How you can work with the other side.
To make demands that -- this far off of where we were starting front.
Seems sin not be really trying to move forward on this so it does lead one to wonder what he's trying to -- And we've got the real problem -- that we've got the fiscal -- yes that's interesting.
But what's really concerning is hitting that debt ceiling was -- probably happen sometime around February and we -- remember what that was -- in August of 2011.
And this group seems to be them less willing to work together now than they -- in August of 2011 which really rocked the markets all over the world.
OK well the question is now how to we keep our money's safe and you actually have a couple of suggestions one of which we've already talked about the fact that.
China yes it is slow down and as a result a lot of its market valuations have come down but.
Perhaps if if Europe's not to when it right if we're not doing -- right -- -- to growth.
Strategy perhaps China will and you have a -- FA exits the Aberdeen Asian Pacific -- Yes it in I've been an irony things it really evolves.
In the markets where used to have the developed economies where these great stable economies and had good financials.
They've got the emerging economies actually have much better looking -- sheets.
And FAX had a a great track record over any three year period they've never a last money.
But we -- -- like to buy -- then.
They've got a good the prices at a good discount to NAV.
I was happens every now and then it happened a couple weeks ago on November 14 -- was a little debt that was a great buying opportunity.
So we waits because we're very picky about one -- coming in were waiting for another opportunity like that all of.
Us at a time wanna get your second pick in which is a corporate bond fund LQD why you like and quickly.
Have again governments don't look nearly as good -- corporations corporations have record levels of cash they've got really healthy balance sheets.
And are looking to to pay off some really grating come.
-- nor -- -- this advisors have a wonderful -- -- north thanks for coming and prevent you tip listing set me.
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