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Howard Rosencrans, Value Advisory founder and chief research analyst, weighs in on the fiscal cliff and why he believes the discussion around tax incr...
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Economy they also are not as Big -- -- as many want us to believe our president -- value advisory Goddard chief research analyst is here -- -- economy is on the right track.
Using the tax increases even if -- on the top 2%.
Won't hurt the economy -- up.
They eat the whole thing with the tax increases a complete red Herring it's a red Herring to the fiscal cliff discussions because we really need entitlement reform.
The people have spoken and they said they're not interested in anything -- singular focus is tax the rich but at the end of the -- People are going to make decisions but that will be put off into the future so you will still see the momentum from a positive housing cycle from all the things that the -- doing.
Will it catch up a little eventually hurt the economy it will hurt in a very big way but not out of BD.
We spent 25% right now -- GDP you say that is gonna go higher as and you -- kind of like John -- today saying we have a spending problem.
I am totally I.
Believe -- -- ought to lead independent I am absolutely in the GOP camp this whole discussion is Axel lunacy that 25 is going to forty increasing taxes on the -- accounts for nine.
-- -- of spending this is craziness.
We have that we back to discover that as -- let's say.
That unfortunately it would that we -- a president right now that's up financially responsible and that.
And you're opinion the GOP is gonna end -- caving more than they want -- -- but as they another gonna get blamed if we get down eighty years even there's -- The world has spoken -- -- tax the rich let's just keep the ball there's nothing that's gonna change it in the immediate term.
People believe that somehow will kick the can look at what the Fed did yesterday -- just said we'll do Q week forever wolf throw money at the system and -- by the debt.
And now you seeing a follow through in -- that -- in in Europe and they're following the exact same formula.
It is a -- -- situation we're getting in but everybody's willing to risk it for a temporary good -- Look at you wanna ask you you but you -- I -- -- reform and there isn't Hummer perform but housing that's the one of the bright spots that we have seen.
May be a lagging indicator considering what happened quite years ago accounting is actually Ben.
On overall do you think that what we're saying in the overall economy and with housing the gates the problems that we've got.
Right now with the fiscal yes I think that's exactly the point housing is it is so critical to this economy.
Every incremental.
-- who -- right now we're only talking about five or 600000 housing starts.
Average.
Historically going back a lot of years as a 1000001 with the growth in the economy it's probably a 1000002000003.
When you start to double housing starts are conceivably catch up for the under build we've had the past five years.
You can see the entire economy literally the entire economy just on that straight with a little real estate price of.
Appreciate Howard always talking about everything so -- -- and you say stocks are cheap thank you Howard.
But it Henry Harrison credits are stocks cheap -- and again like that is well what he said love that got -- How you're gonna be able to get there from here without fighting with your spouse about it Google stock higher after the release of its learned that map back for the iPhone 5.
And gasoline prices are heading down but still the highest ever for this time of year we're going to be a lot of the CME went where they're heading next week on the slope.
-- as we do every day this time they look at what.
