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I'm Bryant's all the live at CME Florida Chicago actually little bit above the Florida we are joined now.
By top -- -- as well mark and the president and being investments markets pleasure welcome good to see it thank you so much all right so.
I -- -- start actually because we got so much going on the -- been a story.
-- -- you're not a dollar player but the deficit story is one that's moving the dollar and the deficit story.
Is big for new dean and for your investors as well where you see deficits going and how will it impact our investments annual product.
It's great question and in fact when we we go through the depth that we get back to the -- -- about that those good so first half.
-- close -- 2008 September 2008 federal government shuts its books -- record budget deficit 500 billion.
This year one point one trillion so we're now running to budget deficit that the federal government level -- on this they just keep the normal.
Goods and services running.
The second part of course is for all the fiscal stimulus that's comport.
Now when you're running a one point one trillion deficit -- with got to pay for that you know who's gonna pay for that we have to ask where he -- -- that will believe -- that with higher taxes right.
So these two primary -- to get in -- -- taxes corporations or individuals.
Here in the US we have the highest.
Corporate tax rate in the developed world except apparently -- -- -- yeah.
-- seen how well their economies perform athlete for the last night they got some -- -- five recessions in the last.
Fifteen at forty years public has to consist of recession for the last year -- said.
Sell unlikely to see corporate tax rates going up in the US and in particular the Obama administration unlikely to raise tax -- -- the corporate level that just -- jobs overseas.
So where does that mean attacked we're gonna land probably and you mean you know on -- the Bible are you happy but you know I think we're all conceded he's -- a little bit yet so what does that mean for.
For your clients W I would imagine if you know it if I'm a rich -- And I'm gonna -- -- I don't look at reduce my tax -- -- -- -- tax free -- on the start to say okay where we're gonna get any kind of tax deferral at all.
Indeed I think municipals are going to be a very key player in this market going forward and we've seen -- already this year.
This year -- municipal.
Mutual crimes that inflows -- 44 billion that's a record.
The highest tribute here was in 1993 when there -- 29 billion of new -- record inflow into me funds this year year to date we're way beyond the last -- in 1993.
The people are coming back to Munis for that reason because they're afraid of the tax rate.
Indeed it's also a lot of fear talk about inflation.
Really taxes are going to be more important -- accurate -- than inflation.
What about -- so much debt that is being issued by localities states senator because stimulus whatever -- -- you know I need a bridge into road project he needs to work they're gonna finance that.
Is there demanded so that there is to to assume that debt which would help some state governments accomplish things they want to do right great question mirror image from last year.
Last year too much supply none of the man.
In the municipal market this year quite a bit a demand coming into the market and not enough supplies.
As a result we've seen in his -- heavily down which -- -- -- municipal governments to issue even more bonds.
So we'll start to see things equalized may be the fourth quarter of the first quarter of next -- just maybe not good for state deficits issuing more debt is is somewhat as you said someone has to pay that back but at the same time.
If you need to finance projects that might create jobs at least it sounds like states and municipalities localities whatever should be able to do that.
Great question is what they're doing and -- the day.
Hopefully stimulate the local economies.
Generating tax revenue from local economies -- their way out of there don't they don't but they don't make the money back up to pay the debt pay the interest but the US government doesn't.
Then we're gonna have Iraqi growth scenario for the next two to three years.
-- want things we have to watch very carefully as well the consumer come back.
Will that be enough tax revenue generated from Chris silicon taxes real estate taxes -- municipalities -- And what are we gonna do it is very large fiscal deficit which is right now running at eight point 9% of GDP that's the highest since world war -- when we were going to think of world war.
And a tale of mark we got to leave it there -- we better hope that there's somebody go to buy that debt finance our deficit.
That's an accent that's for next on -- -- pleasure thank you very good data they go the economic hope of the United States is rests on the back time.
-- -- No word on thank you for that you make me feel so bad now my --
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