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The Fiscal Cliff Deal’s Silver Lining

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    Swiss America Chairman Craig Smith on the fiscal cliff deal.

  • Duration 4:44
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Alert to these marks soared in the face of a government growing but investor keeping Greg Smith said.

There is another reason for that it could have been worse the cliff Steele -- been a lot worse taxes could have gone even higher.

Craig you look like you're having -- hang over yourself what would explain that that that it could have been -- Well it could be -- -- -- Neil let's say that the president did nothing and let us go off the cliff regardless of what it would have done to the economy.

He would had a dream come true taxes would have gone up on a 100% of all Americans.

Instead 99% of Americans now have permanent.

The bush tax cuts I mean that.

-- that that is something Mr.

Bush is gotta be delighted about.

-- -- -- -- Awarded its -- booking theater just agreeing to that part because of principle that's where they did agree that they -- slaps.

Apps absolutely but let's look at what else we -- -- let's look at look I don't like this deal you know that -- know trying to find the silver silver lining and it.

We did see the estate tax a death tax -- 55.

Million.

Above that you pay thirty from went from 35% to 40%.

Ten million for families so that's a huge win there -- in my opinion.

OK all Americans taxes are gonna go up 2% because the payroll holiday.

Is gonna -- as is gonna go away as you know somebody's gonna pay a little bit higher taxes and but more importantly.

I -- the certainty now -- the LU and I've talked about this for the last year Wall Street's looking for certainty on what they got today.

Is that we that they know what they're dealing with number one.

They know that mr.

Obama's gonna spend 330 billion more talk about cuts he's spending more money.

And that means mr.

Bernanke's gonna keep the money -- cranking away there's going to be plenty of liquidity and Wall Street showed up by the huge rally that we saw today it's.

Very good point and you make many of them but Craig here's where all kind of respectfully disagree and I don't think of -- to do that with a genius like you but as you know -- read prompter on David.

And here's my argument that.

What was weird about today is you had this bastion of of capitalism.

Celebrating even bigger government even more intrusive government even more regulation minded government.

It grateful that that this -- that the taxes didn't triple.

Grateful that estate taxes didn't go up as much as was feared and affect as many as was feared.

We are so grateful for so little that will buy on squat and that's a whereas.

Well and you write about Daniel but let's let's look there were some some up plans out there that would raise dividend taxes you're right three point 6%.

Senator you're running late night how can you -- get a sustained rally in the face of news like this.

I mean if you are going to have to government -- war capital that private capital would love to get its hands on.

That is not a long term.

Promise you know -- I mean.

-- I agree I agree no long term I'm not suggesting that this rally's gonna stay.

But there's one -- Bernanke.

Mr.

Bernanke's going to keep the money -- He has so that's an armed resistance still feel you don't any united -- -- realize celebrating artificial -- -- it's like all nicotine fits.

And we only didn't know what.

-- I agree with you wholeheartedly we took a junkie we gave them a shot heroin today he feels better -- we didn't help we didn't help the -- but.

But -- but -- here here's the Wall Street now isn't a position where they know that continuing resolutions are coming and the whole issue of -- sequester.

I don't know how any missiles beyond in that environment we're just showing -- -- -- today is that the Bernanke later tonight but it certainly can't -- fiscal guidance.

Well let me tell you why because now the Republicans are in a position of strength.

They don't have to do any thing and a continuing resolution doesn't happen and you have a government shut down.

If they don't do anything on the sequester automatic cuts start slashing left and -- -- you do get the spending cuts.

Now I hope you're right -- that -- that the Republicans get a backbone because if they don't Patrick Buchanan was right.

The Republican Party has no reason to exist.

But I've got to believe as easily as they let this thing happen Neil.

They're expecting in the budget that I Earth Day at the ceiling debate and that continuing resolution debates.

To be where they show their strength and let's just pray that's the case.

I think the temporary rally we some Wall Street is that Neil I don't suspect you'll see it last through the month.

All right we will -- credit always a pleasure and reported many more chances -- your happy New -- -- to you was well my friend Greg Smith.

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