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Deutsche Bank Advisors Chief Global Economist Josh Feinman on the potential impact of sequestration on the economy.
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The Dow closing in on a new record just -- points shy of its all I.
That back in October 2000 -- joining us now -- its outlook or of these markets.
At the prospect about our record is Josh Fineman chief global economist -- of bank -- great to have you here great to be here I loved this.
Absolutely -- love this on Wall Street when all the shorts get caught me.
When we see the market move against them were suddenly after all of the geniuses.
Whether it's.
Bill Gross.
It Pimco whomever may be.
Talking of talking down stocks and all of a sudden we're sitting here -- -- points from the high.
Potential of that.
Well it is good I mean the I I think the stock market and risk markets generally and responding to signs of the economy is doing a little bit better.
-- -- if I'm sure I mean we've got people running around with this risk on risk off nonsense.
Again take its risk off.
Who are these geniuses who haven't gotten it right for so long now that they they must be flat broke.
Well I think.
You know the the Italian elections through people and I hope is that that throws -- ever -- the Italians have a vote I now.
But it you know it conjured up some worries again about the European crisis.
But they were.
We relatively that according European crisis.
I don't hear your pick I hear your -- section yup absolutely least in prospect and to be confirmed.
Again but.
-- in the world are people doing here we've got earnings that are solid.
That there's even lost her around them they're good quality earnings were looking at it isn't just simply savings out of -- from.
From the bottom line here.
This is good stock wire people feel where -- but so it's.
I think everybody is and I think the bill that's a slight exact data permit by -- by over by her verbally OK but.
Some people are talking about some of the things that you're you're mentioning.
But you know there are some some some war is the European situation one.
Obviously the fiscal follies and Washington.
You know exactly what's gonna happen there the uncertainty that that's casting I think is another.
-- -- -- had Europe.
If we have survived.
Four years of the madness that is the Obama presidency.
Are you saying that some silly little sequester with what now we learn it's 44 billion dollar impact.
-- -- sixteen trillion dollar economy 1% of the federal budget.
That we are to take these these are simple.
Elected -- seriously it's not Armageddon if not anything storm again thank god -- Can not even close -- that.
But -- put it in the context right.
We just had a tax increase payroll tax increase we -- an increase in taxes on the -- the upper end folks that's going to be a bit of a drag on the economy.
We're gonna have some sort of spending reductions here modest though they may be a little bit more of a drag on the economy.
The economy is getting better but.
You know is probably not the best time to be throwing an additional -- -- -- -- -- and under no circumstance.
They interpret please my dismissal.
Of the intelligence and the sense of responsibility on the part of this this administration and the Democratic Party.
Is any way.
Being dismisses.
You know that's the goal of having more responsible leadership.
A more responsible congress for more response sent.
But what I am saying is isn't it time not to take these fools quite so seriously.
And everybody has to understand that this is what they are they're behaving this -- the pattern is established.
Create crisis run adopted manufacturing crisis run it up to the deadline try to shove it through is that they're frightened children the Republicans.
And roll over them -- look both sides have not been exactly acquitted themselves very well -- I don't have to be by parts of about this I'm an independent conservative.
It is clear that this is the presidents will it is clear it's the president's policy and there he he owns -- he -- sequestration.
Well whoever owns it from a political perspective of government economic impact that that are certainly not going to be -- again but they are modest additional drag on the economy the other thing to keep in mind -- We don't have a short term budget problem we have a long term budget problem long term trajectory of the debt.
This is unsustainable something needs to be done about that but that can be phased in over many years problem is no one's doing anything about that.
They're tackling the wrong problem.
-- on entitlement spending at the wrong time.
And by the way this president refuses to talk about it entitlements are loved what he said the other day said you know he's got a horrible -- -- -- paid attention to -- -- -- the reason.
It's just kind of noise -- -- -- pay attention president says things like this he said that you know.
He -- homework over the course of his presidency.
Because he finds that he can't do at all loan if you -- -- its officers imploring.
The citizens to rotten.
Forced their congressman and senators.
To -- exactly what he says so that he can move forward with policies I thought that was a gracious modest perspective that he brought to the problem solving -- efforts politics -- Washington are operating.
You know that they are not pretty but this markets for -- -- gonna stay pretty.
I think it could -- -- right there we're gonna take that are just fine and great integrated -- super.
