Posted by WARREN MOSLER on November 12th, 2012
A bit of equal time for the Democrats, as they join forces with the Republicans to hike unemployment and lower GDP, with all forecasters in agreement.
But I do thinks markets and the economy have already discounted at least most of it:
By Bruno J. Navarro
November 9 (CNBC) — The so-called “fiscal cliff” is a good thing for Washington because it will force both Democrats and Republicans to cede ground on core issues, Whitney Tilson of T2 Partners said Friday on CNBC.
Tilson, a supporter of President Barack Obama and fundraiser for his re-election campaign, said that he expected resolution of the “fiscal cliff” would involve increasing taxes and eliminating deductions, as well as one important area: “Democrats are going to have to touch the third rail for them, which is entitlements, and Obama, I think, is willing to do that,” he said on “Fast Money.”
“Every Democrat I talked to is willing to do that, but only in the context of Republicans giving on the tax and deductions side aimed more at wealthiest folks in this country who are the ones that can afford to give more.”