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Paul Schatz, Heritage Capital LLC president, on why he believes the fiscal cliff was a hoax, and the economy is in no better shape than it was before ...
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Thanks com.
-- products guest says the fiscal cliff deal is one of the worst deals he's seen in his lifetime.
Joining me now heritage capital president.
-- -- I've -- we we know where you're coming from but it could -- been -- -- -- -- full -- off the cliff right.
I'm not sure that would have been worse for her and frankly I thought the -- clip was the biggest hoax and Y two K.
But but the country's -- functioning January 1 and January 2 regardless.
Wasn't a clip was more like -- hill that eventually we would climb up and get too tired fought back in the second or third quarter think.
The administration that -- -- did a wonderful job of muddying the real waters and that is -- -- -- sounder fiscal.
Ground and we were yesterday -- the day before the week before the month before so they somehow -- with on taxes taxes are not our problem.
Spending is our problem.
We have problem -- is is congress in general right in the way they handle things in the fact that everything is decided last -- is now here we are two months away from the debt ceiling debate now.
Which could arguably be -- worse for the markets -- this fiscal cliff mess ever was.
EU faded out for -- -- high -- and your name and your question.
To get a -- debt ceiling at the end of the day is gonna end up being worse for the markets then that fiscal clip isn't it.
-- most likely that that's the sad thing is we come down to making deals that literally.
12 before midnight now we've done it twice somehow this is now.
Par for the course in congress it's not good for the markets is not good economy.
It's horrible for corporate America and bad for investors if our behavior continues like this or we end up -- -- -- Europe I don't think -- that bad but.
That's -- headed.
It's not good for anybody.
We still have no certainty.
Corporate America is no more certain -- they work -- -- -- -- a month ago and.
And what's changed nothing.
We'll pull you say that any gains this year going to be front loaded -- believe the by the end of this year beginning of 2014.
We could indeed slip back into recession but.
You know -- housing is looking -- -- the auto industry is doing better consumer sentiment last month hit an eight month high surely there are some encouraging signs there.
-- -- -- I think second half a thirteen and fourteen others are Lou what would be the warnings that warning times for me to worry about a mild recession.
Corporate America still in great shape they get to almost three trillion -- bounties they're still lean and mean.
I think games are going to be front loaded yes that it if if your stock market investor I think the best time the market's gonna be earlier in the year.
Pretty much what worked at the end of last year it you know industrials.
Are should continue decently.
We'll may -- technology a little energy.
-- health care and then at the backside of year I put it all around and I think you'll do better with Staples and utilities and Telecom.
And kind of the stuff they nobody really wants to -- right now.
Why do you think we're gone off its so called clip at this second half of the year mean by then he got -- believed.
Everything will -- relatively be settled.
No I don't think it's gonna be settled for frankly I think we're -- -- -- in this two year election cycle again another.
Six to eight month to talk about the congressional left in the fourteen but the real reason is because.
Taxes are going up.
And so few people realize the average person.
This is not at 250 K and a lover for an up and about the average person -- they go up that's it less money is gonna go in the economy.
No one's talking about the obamacare taxes and -- yeah charge they're starting today.
All this money comes out of everyone's pockets if it's coming out of our pockets he is a multiplier effect it doesn't -- -- -- -- -- doesn't get spread out so I.
How you can be so sanguine on the economy especially the second half -- the year unless you somehow think.
The emerging markets are gonna explode -- and lift every one ship -- I don't think so Europe's market and outright recession maybe it's a little better but I think here will be -- little bit of payback to -- second half the air.
Hold Schatz thank you so much for joining us really appreciate -- that we just talked about the extra costs and over the Obama can't listen to song that I.
You know area and -- -- common passengers.
RA and speak NM get hit with cost CIA -- -- point he really did love payday but your first paycheck in the new year may not be as sweet.
As -- -- as fiscal -- tax.
