Sen. Bob Corker, R-Tennessee, said today the economy won’t tumble over the fiscal cliff, despite all the gloom and doom talk coming from Washington.
Corker told CNBC the expiration of the Bush tax cuts at the end of the year, followed by automatic spending cuts “is just simply not going to happen.”
He didn’t explain exactly how the government would avoid the cliff, but suggested the debt ceiling is a more important issue.
here for more fiscal cliff coverage by CNBC.
Finding a reasonable, spin-free explanation of what the debt-ceiling debate and credit downgrade really mean is next to impossible.
But the Milken Institute has given it a try. The nonpartisan, independent think tank has published a
thoughtful commentary from a panel economic experts from the left, right and center.
Here are a couple of comments about S&P’s downgrade of the US credit rating that I found particularly interesting (Phillip Swagel worked in the Treasury Department during the G.W. Bush adminstration. Jared Bernstein was chief economist and economic adviser to Vice President Joe Biden from 2009 to 2011.)
A long-term solution to the federal budget deficit must include spending cuts and increased
revenue, Alcoa Inc. Chairman and CEO Klaus Kleinfeld told the CNBC Squawk Box crew this morning.
Kleinfeld called a downgrade in the US credit rating or a default “a nuclear option” and urged Congress and the President must come to terms on a plan that “gets us over the hump.”
The current debate is sucking the air out of the economy, Kleinfeld said, but he’s optimistic a deal will be reached on the debt ceiling before the Aug. 2 deadline.
I’m not so confident a deal beating the deadline, but Kleinfeld is right about one thing it will take spending cuts and increased revenue to solve the deficit problem. Not just one, but both.
Kleinfeld Squawk Box interview:
Getting America Back on Track
This entry was posted in
Economy and tagged Alcoa Inc., CNBC, Congress, credit rating, debt ceiling, deficit debate, Economy, Klaus Kleinfeld, nuclear option, president, Squawk on . July 27, 2011
With calls growing for Congress and the President to put aside politics, will the Washington politicians finally reach agreement on the debt ceiling controversy?
I doubt it. Look for a few more days of political theater. The deadline is still a couple weeks away, after all.
Eventually the pols will act. It’s hard for them to ignore political self-interest, but they have to do what’s best for the country, right?
This entry was posted in
Economy and tagged Ben Bernanke, Business Roundtable, Congress, credit rating, debt ceiling, Economy, Financial Services Forum, Moody's Investor Services, National Association of Manufacturers, Partnership for New York City, President Obama, U.S. Chamber of Commerce on . July 14, 2011