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Rick Newman, U.S. News and World Report, weighs in on the fiscal cliff stalemate and what it will take to turn things around in Washington.
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Sunday top lawmakers meet today at the White House.
They've had months to reach a deal and still there has been no deal and there's no negotiable plan on the table that -- to do their jobs that is my opinion.
If it was you all -- he would likely be fired by now Rick Newman from US news and world report is.
Odd look on I've had it up to you witnessed I think our view is due to that you share -- -- I don't think there might have a meeting later today to think about whether I should do my job or not yet and I really -- you reassure people -- a lot of people have not been paying attention this until recently.
And obviously they're gonna start paying a lot more attention because this is already affecting the real economy -- is absolutely start seeing affect the stock market but notices and now at this is another get everybody's attention every media outlet in my note left wing bite -- middle of the road.
All of them expressing outright what is going on here.
But nothing happens well it's I think it's worth taking a step back and saying people have been watching this develop for a long time.
Did not have very high expectations that much we get accomplished this just remember this is still lame duck session of congress we've got a new congress coming in.
In January and of a lot of people said you know -- -- -- there's a 50% chance they'll actually get some kind of deal done before the deadline remember this as.
Good and they can just push the deadline off.
I mean that is that there's always that last second option let's just extend the deadline for another month to month -- -- minuses of that could very well happen.
And let's take a little -- yeah I think this is a crisis of the American political system.
I'm not pointing fingers of blame -- the right all the left I'm not doing I'm saying the system.
Is a problem that I don't think you can get elected to office today.
If you say I'm gonna cost this entitlement all restrict back -- -- -- all restrict all cut back payout to some group of people you know they.
I think that's the kiss of death in American politics and therein lies the problem.
Well that's gonna have to change because these things need to be done I mean there's that's just basically simple -- -- what what will it take to make us change it's gonna take real pain it's in we haven't seen market pain yet -- that's really putting Washington device that has not happened yet.
Mean a lot of people say look this is a man -- crisis the only crisis because we haven't dealt with these problems up till now and congress set this deadline I mean as these could deadlines could be.
Random and they could be scattered scattered all around so.
If we start to see I mean we've seen this before -- you know -- summer of 2011 we saw this fall 2008 we size it took.
A five to 7%.
Drop in the stock market -- being abrupt plunge to get their attention in Washington and that and we got action.
So you can look at the future and their number of things like that -- that happened that -- force Washington to do something okay but we're not there yet.
No enough that yet because we could as you suggest we could just roll everything over.
Agreed to keep on disagreeing with the current system in place we could do that.
But -- only delays the five to 7% stock market drop or a downgrade from -- rating agency or a Beaumont products.
-- and I -- that might actually trigger the downgrade from the rating agencies which many people think is coming almost regardless and it's worth going back to the first time that happened in 2011 and Standard and -- -- They cited political dysfunction as the as the main reason they did that they're the top of the drop in confidence in the American political system gets to just solve the problem.
And that's what we're seeing all over again and everybody who knows the details of this we'll tell you.
This is not an unsolvable problem.
In there are solutions laid out all over the place in Washington stacked high on shelves it's a problem of politicians.
Getting together actually solve the problem so we can do this it's the government that's the problem not the economy and not even the deficit.
Most awoke Toronto.
It bloody -- I think here's what I think is gonna happen.
I think that we will get some kind of last minute deal which raises taxes on people who are successful making serious money.
Cut and forget about any spending cuts and I -- that's gonna happen that promises but now they're not actually gonna do it and they'll simply ignore the debt that's what I think is gonna happen you're great.
Uptick that that Stewart because I don't think that's what's gonna happen I think they're going to -- I don't think that Republicans will agree to any tax increases.
Without spending cuts and I think they've been very clear about that -- not gonna I they're not -- -- I have to go over the -- I think they're gonna extend the deadline.
And I think we're gonna see further downgrades -- credit rating that's where things that happens I think we're gonna fight over this throughout when he thirteen work.
Rick Newman a budget expected earnings of -- as if falling off the fiscal cliff wasn't enough to push us into another recession or cause it could of course.
Tomorrow at midnight a longshoreman strike could shut down fourteen major points on the East Coast and the gulf.
141500.
Dock workers from Boston Houston -- --
