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Jefferies chief financial economist Ward McCarthy argues there isn't enough time to address all the issues to make a deal on the fiscal cliff.
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So the house may be sending its members' home but the press seems to think -- -- they just got out of business the whole fiscal -- ideas and easy FedEx.
We can probably solve this but we.
It's not that -- He's a cake aren't our first guest disagrees he believes it is simply to -- for anything to get done.
Before the end of the year as both sides are just too far apart on key issues joining us now is ward McCarthy chief financial economist at Jefferies.
You think it's doing what is going -- -- -- -- -- Well they just isn't enough time to address all the issues that that need to be addressed.
Especially if John Boehner and president -- -- only gonna talk on the phone once a week.
There has been some progress I think especially on the tax cut side.
In terms of -- the types of tax reform.
That could raise the type of revenue that we're going to need but as far as I'm I can see there really has been no meaningful discussion -- all.
On the spending side and is any American who has the balance the -- budget knows.
If you have a deficit that means you have to are bringing -- bring come and also spend months.
That's driving me absolutely crazy -- -- all wherever talking -- here is raising taxes and no one is talking about.
What we need to cut if you're exactly right I mean if this were our house at home the first thing you would do is stop spending you tell your whole family.
-- -- -- -- Regardless -- You really think it's too late I mean I sort of think -- come together and come up with some solution.
That's held together -- you know chicken wire and bubble gum and Scotch tape and it's just this you know little crummy thing that that will keep us from going over the clip inserted.
Pushes the whole problem out off into the future.
Well I.
I think they need to treat two separate issue separately one is avoiding the cliff.
And I think that's the way to do that is to reach a short term agreement on tax cut extensions.
I think how much felt relatively optimistic actually that they can get a long term budget agreement then next year.
But I just don't think they can do it in two weeks which is what the president seem to think is going to happen.
So if they separate the two issues reach a short term agreement on a tax cut extension that's only gonna be temporary so it's not like this signing away their future and blood.
And then worry about a long term tax agree.
2013.
I think they can get it done but it they just have to get the right back on the ball.
Yeah -- you don't -- come up with this short term plan that raises taxes on you know.
Part of the population leaves them for the rest and then says we're gonna deal with the rest down the road.
That's really crummy solution and what how -- the market -- economy -- about.
Well I agree with you it it would only be a short term solution can avoid going off the cliff I don't -- anything real.
No wouldn't achieve anything real except avoiding going off the cliff.
And I think if they made it clear that was the sole purpose of it than people would take a big sigh of relief and say okay now show us what you really gonna do.
And and again they have to attack both sides of the budget right now they're not even having meaningful discussions on that.
-- it's so frustrating is -- It is I'm suffering from fiscal cliff fatigue and I think it's gonna get worse I -- easier to the -- approaches.
I -- to -- McCarthy happy holidays to you thanks for coming -- I think you -- -- Smart.
Way to bring you know mid analyst -- I -- no love all this talking about spending spending.
