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Economist Peter Morici gives his market outlook for the week to come, both with and without a deal on the fiscal cliff.
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-- -- -- Although more reaction on -- lasted fiscal cliff talks today looks good appear recent economist for the University of Maryland is live for -- some Washington.
Do you see -- good morning Peter you know it's funny I was just looking at your economic forecasts for the week.
Last night and with some big numbers coming out this week is on the going to be overshadowed though by the -- All I believe so I don't think we're gonna have a deal tonight or even if we do we're gonna spend the next several days.
Sorting it out so I think that's going to be the big news this week in that will move the markets.
-- but we do have the jobs are coming up at the end of the week and heavier saying -- -- -- it's gonna -- at some point 8% -- say that we -- go over the fiscal -- Two million people on those long term unemployed.
A benefit rolls they're going to be.
Often they're not gonna have their checks -- starting well today they got -- last check and you've also got the issue of AMT.
Not your brilliant patch we're looking at Social Security all these issues I mean do you think that if we do go over this clip that.
That the economy is gonna falter on this immediately.
Oh I don't think it's gonna fall on us immediately but by February it would have which they ought to clip the real question is -- we going off the -- for good or we bungee jumping and that we reach a deal.
You know in ten days -- two weeks right now I think it would be terrible to take the deal the Democrats are offering it doesn't reduce the deficit.
And it really sends the wrong -- message to small businesses about jobs creation.
My feeling is that these spending cuts have to come -- they have to be much larger than anyone has been entertaining.
Given how rapidly entitlement spending is projected to grow by the end of the decade.
But you about spending coming on the other side and this is the argument -- -- hearing from the Democrats though is that that's spending is what has kept.
The economy afloat along with the actions that we've gotten from the Fed along with incredibly will record low of mortgage rates so the housing recovery has been in full force this year.
Amid the Democrats are gonna say that spending needs to stay in place a -- for another year because the economy.
Is so fragile how -- the GOP effectively rebut that argument.
-- the president has taken so many steps to keep the economy from growing robustly remember at this point coming -- -- river recession of similar debt.
President Reagan had the economy growing at 6%.
Essentially all of this spending is something that's put been put in place.
As a substitute for real growth but let me -- -- and number -- break your I suppose we doubled.
Just be increased by 50% everybody's income tax.
We still would only cut the deficit in half at this time -- I mean.
Right -- over the next four -- five years if we do not do something about this rapid growth in spending spending that was supposed to be temporary.
But has now become permanent.
Then we are going to be in a situation like Greece I'd rather take it all now.
And have the president kept a bargain for his middle class tax cuts in exchange for genuine spending cuts.
And force him to do the things that he needed to do to spur growth systemically.
You know deal with trade deficit with China.
Back off this terrible regulation in the New York banks that seeks structural solutions instead develop domestic energy and so forth you know it's very easy to be.
It's my business and knocked down growth right NC I need spending and status and to carry us -- well that's what's going on.
And watch the president Meet the Press yesterday at Peter mean he still is is not backing down and is not backing off this is what business is not -- one voted in November in this -- going to be so the rhetoric continues today.
A -- -- -- thank you thanks for being here this morning Peter.
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