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John Thomas Financial CEO Thomas Belesis on the potential consequences of reaching the fiscal cliff.
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We know what's got our focus these days obviously the tragedy Connecticut -- the crisis over the -- But did any do you -- this probably under the radar is FedEx posted -- 12% decline in second quarter profits -- -- says.
That's big -- you didn't hear continues a pattern of company warnings.
You cannot ignore companies that do business everywhere are worried about things getting bumpy here.
That you might have -- common Wall Street too but -- he is right.
Any tax increase on the rates could push us closer toward a recession to Atlanta on he says -- sequel could be even worse.
-- not use it.
The correct -- -- have to tell you FedEx amongst many other companies are very concerned with what's going on with the economy -- what they're doing they're hedging themselves because if this administration.
Increases taxes -- to a -- to 50000.
You know you could see its economy go back into recession so a lot of companies are preparing you know to.
It did to the somebody that make -- new to shareholders now before they actually have to come -- and really.
Say it's sort of like.
Free blaming.
It could that some of them could be saying just in case our numbers staying this is what we're -- units and.
I think all politically -- bring up -- companies are.
Forecast that this -- actually will be very firm on his commitment to raise taxes on the wealthy.
And if that does.
It's not as well in other words that you that we -- -- it gets to be that happening -- Maybe 700000.
Another study is out there you know even Pelosi and senator Chuck Schumer said.
A million plus right now that happy until the economy -- more than a positive direction on fortune you have all the rhetoric from the president this administration but he wants to stick.
To the plan would you could live with a million plus you don't like it.
Let's and I think the economy could handle it you know up company but not -- us anything -- to be very detrimental not it's my belief let's look like this deal -- On one hand you have the Fed trying to certainly the economy.
The administration this president wants an additional fifteen billion in stimulus money on top of the fact that he wants to.
Raise taxes to -- the economy it doesn't make sense so what companies -- doing.
You know the -- -- today it's not narrowly goes along economic numbers save it surprising weak housing starts number today.
Primarily going along and sort it whistling past the graveyard what's them.
I think everyone is forecasting and you know why when there's a time of question ability.
People don't really the -- really what's happened with the company sold their hedging because they want to wait and see what happens after this question mark goes away with the fiscal cliff -- this.
What is FedEx saying all these evident Minnesota my meant Texas so many others have been warning telegraphing things to get Dicey.
Here and abroad but when they say here.
I might Madras have been visible -- -- what they've seen happening is it beyond the clipping is it just we see.
Things slowing down.
Or or what -- the global economy is improving somewhat but this is gone back to before the election.
Companies have been preparing why because they don't know what's gonna happen with health -- -- in taxes.
So this is not for something that happened today this is what happened over the last quarter what -- preparing.
That god forbid this president does get elected and -- we know -- agenda of raising taxes.
Really putting a lot of regulation on you know Wall Street and companies that this economy could head into one another recession.
So you don't get to -- of the company's given worst case scenario -- And wanted to surprise of the upside.
Now that's what I believe I was gonna all right so then what happens let's say -- -- -- -- deal or no clue as to how bad does it get.
I think we go negative in terms of the economy.
GDP I think -- unemployment number goes a lot higher from where it is now how much time I think you -- another one to 2%.
If not higher than that -- By sometime in the middle of 2013 well and from that point I think companies are gonna have to really -- again.
Which could take us into we thought the recession.
Now this could all be avoided -- -- if the president is very open mind get on working.
Which did business leaders the good business my DP.
-- I think he hates you -- I don't think -- any love lost there and by the way for you leave for you guys drama either but whatever it is such bad blood I don't know if you are against mormons don't really -- -- -- -- So I do agree with what -- -- Which is what I don't know what I crept back at this again I think not got a lot of money -- idea that you don't my guess that he doesn't feel for business people and businesses the way he should feel I think he wants to stick -- Hopefully not.
Right because ultimately it's gonna put people at risk with.
Laying off people people losing their jobs you know companies who would you do that let's say your rate goes -- do you events start looking at -- -- thing you go you go to them.
You have to readjust your -- position with the economy's going you have to be just as a Smart.
You know business leading have to readjust -- what's best for the company you'd never the worst thing anyone wants to deal.
-- lay off people no one likes to do that.
But unfortunately if you don't have any assistance.
You know from the government in order to not do that you have to do what's best for the company.
-- -- make hard choices some sort of threat.
To the present.
Now with Jonathan and I think he has to be very open minded to working with the business people of this country that meet this country when it -- hundred I have my first loan with.
Good to be open -- -- derivatives and it is.
But found thank you very much of America received the in the SAT -- Tom believes this is a very good guys in any dot.
