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Better Markets CEO Dennis Kelleher, Capitalistpig Portfolio Manager Jonathan Hoenig and “The Crash Ahead” author Harry Dent on the fiscal cliff de...
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And -- on the fiscal -- feel is drying it is time to cut to the chase the big picture.
Is there anything good in this bill for employment where -- the economy go from here.
-- -- there's a lot of work left to -- the let's get back to our money power panel Jonathan let me start with DO.
Okay setting politics aside.
What do you think what is all this mean for the economy.
Well.
What I mean I think it -- for the markets analysts site is new places in new opportunities I think despite that and disaster which I happen to think the bill is -- it'll actually in my opinion be good for stocks I mean as stocks even the -- -- look really attractive when compared to debt and are on US government so I'm using the fiscal cliff in the resolution suppose that resolution has an opportunity to short bias to bet against bonds.
I think 2013 is finally going to be the year of since as substantially higher interest rates I think funds like real.
He asked -- -- yeah -- Christie why do you think interest rates are gonna go up from here meaner fighting the Fed they're the Fed has signalled.
That they're gonna do absolutely everything they can't keep money cheap for the rest of our natural lives.
And the bond market seems to be laughing at the Fed I -- up sharply in terms of yield today.
And not too far off for multi month highs I think this is the under the radar for an idea that could make big money 23 -- -- you brave enough to fight to fatten.
-- Yes I am I think they're gonna lose this battle they're doing everything Japan and other countries have done that have not worked out we're talking over decades now Japan's been down for 22 years will never come out of this because they're not restructuring massive debt.
They're not recognizing -- demographics only get worse the illusion here that the economy's gonna somehow get better we keep stimulating.
You've got cut now rebalance things now to have long term growth again so I think the short term yes it's gonna help stock short term it is absolutely a long term disaster we're not dealing with the crisis.
At all Dennis what we really need is for the economy to grow I mean that's the only thing that's gonna really -- -- -- problem.
That's silicon and it's gonna put money in people's pockets it's gonna solve the -- -- -- -- problem.
Is there any -- is there anything in here that's gonna make the economy growing 2013.
Well.
For so you're exactly right what we need is growth the last thing we need is cutting its gonna take money out of the economy and stop the consumers where they haven't been yet where they need to go.
And everybody knows that.
And one of the things you can see in the packages 205 billion dollars worth -- tax Extenders which is a euphemism for.
Basically adding liquidity to two the you know company's balance sheets across the country.
You have that you also have what I think is going to be a balanced deal that comes out of this it hopefully will not have the austerity measures in the draconian cuts -- people are talking about.
You know I think it was -- you just said but going to be Japan a lot thank you start cutting your way into austerity -- gonna be Japan.
We have to pay attention to growth nurturing growth we don't need to be wearing about bond vigilante.
News and screams at what other.
You don't know now I'm not a -- I don't think -- and they are not buying any of that with little meaning yeah.
Hey Jonathan yeah definitely go ahead John of the gotten.
Well obviously if you like seven cities and and and spending at this bill's got -- I mean there's subsidies for NASCAR this subsidies for railroads visiting obligatory and -- -- -- more billions more for green energy and he spent their way to -- prosperity hasn't work -- -- the president's that he can't cut your way to prosperity what needs to be cut in my opinion is government.
Economic freedom is what creates wealth this bill does nothing to -- -- What -- me really nervous about it I don't particular is that we went ahead we raise taxes on 77% of Americans by getting rid of the payroll tax holiday.
So you don't -- raising taxes on people even 2% in some categories well maybe you get a 45%.
Raise this year something modest.
To keep up -- across the living the government just took half of that a week from you.
I'm worried that this is going to -- the economy just the way it is.
No I think so too and you remember this 2% of the talking about putting all the tax burden on there -- 25% of spending.
They are not just 2% cut because they have such a high -- common -- the 1% control 40% of income so.
I think economy is gonna appeal this I think we're gonna be in a recession the second half of this year.
Dennis anything about Banco Edwards not just.
That's just exactly wrong I -- -- what I agree with you Melissa.
I'm allowing the payroll tax to go up -- a 160.
Million workers in this country 77%.
From four point 2% to six point 2%.
Was wrong and they shouldn't have done it at least not for the next year because of the economy.
But you'll notice nobody's talking about that because that only -- I.
-- who make up a 1101000.
Dollars and less nobody was talking about them they don't care about them everybody was worried about the richest one.
Or half of 1% in the.
All over this network all day long Peter burns is injured reports on how everybody there isn't it on the screen -- I'm talking about in the debate that we just had in Washington that nobody was talking about yes you're correct data is that that I'm not isn't bad is gonna hurt and we shouldn't have done it we should have been paying attention to those people we're gonna take that on average thousand dollars and spend -- I'd rather than spending all this strategy on the top job the real -- -- you illustrate stimulating when he -- ever cut spending -- never going to do not -- an environment.
-- -- -- -- -- Given the good -- -- mean we'd all hoped disease some semblance of spending cuts we didn't see it Melissa -- you play with a few times in back taxes are rising right 7% of percent of -- the taxpayers -- -- -- -- -- -- -- long term rates is usually for the next his arm and -- dealer I didn't bring all three of you back together you are fantastic we're out of time but thanks to all of you enterprise edition --
