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S&P Dow Jones Indices Managing Director David Blitzer on efforts to avoid the fiscal cliff and its potential impact on the economy.
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-- that's prime.
Right so while congressional leaders trade jabs on the fiscal -- our next guest says the economy is totally at risk.
-- that and Healy says we can go back into recession in the next few months joining us now David Blitzer S&P Dow Jones indices managing director.
You know.
What happens if we go over the cliff but they quickly come to a resolution they make everything attracted back to Jan one does that.
Stave off recession.
-- probably stays out of recession it won't be proactive president Nobel a lot of anxiety and concern.
So long series tonight and did not just like one tax -- -- one spending cut its its pages and pages and then never do anything in a few pages.
In Washington.
-- you have to unwind at but the concern is.
And this is all really like the labor negotiations it doesn't start -- about 11:55.
PM but I think midnight deadline.
It Boehner says he's going to of -- -- party in Ohio I'd worry.
Gone home for the weekend that's fine he's got to constantly -- are -- And they think -- goes to the president obviously.
But.
Also like -- labor negotiation.
You know when the strike starts all of a sudden everybody goes up and spent three days.
Driving -- at -- -- if -- be given Washington three weeks or three months.
I -- -- west worst case scenario we go over the cliff and no agreement is reached but.
How damaging could be -- split the difference kind of deal that is done that's really kind of cobbled together.
Kicking it down the road a little bit -- that really help us -- I think if you get some kind of a deal some progress you you don't get -- Kind of massive tax increases that are in line now -- they don't get the kind of massive spending cut especially things like.
They.
Increase in payroll taxes or anything in that -- a lot of people defense cuts take a long time to have any impact -- wouldn't worry about that.
You can work out of it.
Truth is we we probably ought to throw the entire tax code away and start over we have a revised this is Ronald regularly in office was a long time ago.
And they'll think Wear out even tax code of.
Let's talk about housing -- your bonds in case Shiller is well housing is is trying so hard to just weeks of gains out.
This fiscal -- can totally set us backwards.
Eight housing.
Probably going to be less damage than a lot of other -- the fiscal cliff I'm assuming -- they say that that.
They don't just get rid of that the mortgage deductibility and that's at the rest of -- obviously the tax be really bizarre.
-- the housing housing has turned around it's beginning to gain.
The September data we saw in this to the point here would things -- -- gets off because of the fall season and everything.
Prices continue to rise and on -- national bases and most of the cities it would fall which was equipped spots.
The other housing reports housing starts were up very sharply in the last report sales are doing better.
-- -- new homes are doing better across the board.
Most report that every report every month but just about all the data -- seeing is positive and housing housing is actually making a contribution to the economy.
Not likely light.
I but I don't think we'll take anything we get obviously the economy is so reliance on the consumer and -- out of this economy.
Candidates support the recovery.
If I I think they can is so out of.
Keep it going but I think he get you know substantial ongoing support.
You really need this capital spending and that's been a weak spot of late but that's.
That's what you need workers pain and ongoing recovery and impact.
Where it.
Tax cuts have worked to improve the economy and get growth.
It's been -- -- -- directly business capital investment -- wealthy people.
What -- investment the so called investment tax credit right you know that was the -- Jack Kennedy turned the economy around when he became president.
And you know.
Some people don't like here but that's the pure keynesian economic and right at a Bible.
They came throughout not the other -- the FX finally David Blitzer thank you so much to -- -- you thank you to negotiate it.
