Mad Scientist
Feels Good!
- Sep 15, 2008
- 24,196
- 5,431
- 270
More Bailouts. More Spending. More Debt.
From StreetTalkLive via ZeroHedge:
The Next Four Years Won't Be As Good As The Last
From StreetTalkLive via ZeroHedge:
The Next Four Years Won't Be As Good As The Last
First of all, Obama has made it clear that he will raise taxes on "the rich" and if he gives in to extending the Bush tax cuts again it will not bode well with his constituents. Secondly, it is highly unlikely that the Republican controlled house will just go through with an extension of the cuts for a year as they are committed to reducing the deficit and government spending. Therefore, it is likely that they will be asking for cuts in exchange for changes to the tax code. This impasse, and inability to cooperate, will lead to another "debt ceiling debate" as we saw in 2011 which will ultimately lead to the economy rolling over "the cliff." This is no trivial matter as the economic impact of the increased taxes is roughly 3.5% of GDP in 2013. With the economy barely pushing 1.5% currently a 3.5% clip from that growth puts the economy into a very nasty recession. Of course, at that point, the Administration will start asking for further bailouts and spending programs to once again revive the economy.