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Super Committee Countdown: So What If It Fails?

Friday, November 18, 2011

Roben Farzad, senior writer for Bloomberg Businessweek, discusses whether U.S. treasury holders should really be worried, and what else is at stake. 

Guests:

Roben Farzad

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Comments [8]

wnycrocks from Upper West Side

As you no longer take comments but for when you're on the air, I'm sending this now. PLEASE stop misprouncing environment. It is en vi RON ment. You say en vi OR ment. Lenny gets it right every time!
Love your show in spite of this.

Nov. 18 2011 11:14 AM

When Bush came to office the debt was in the range of $5.5 trillion, and our finances looked so good he thought we could afford a big tax cut. When he left the debt was roughly $11 trillion.

SEQUESTRATION may unfortunately be the best option. Right now the Republicans in the Super Committee are saying they will only compromise on revenue, (by getting rid of loopholes), if we have permanent cuts to the top rates? What? The solution is more unfunded tax cuts?

Allow Sequestration to happen: spending cuts across the board [without Congress doing a thing]. Then just allow the Bush tax cuts to expire so revenue goes back up, including the Capital Gains tax which will return to 25%, [again, without Congress doing a thing].

Then you could fire Congress [since they didn't do a thing] and save some more money.

In reality though, we know the Dems will cave and extend the tax cuts for Capital Gains and probably the top rates.

28% Capital Gains was acceptable for Ronald Reagan...today's Republican party would call HIM a liberal for this rational approach...

Nov. 18 2011 11:02 AM
RMC from NYC

It will fail, because the two sides are too far apart ideologically and have no reason to compromise.

Being far apart is a condition of American politics, but gridlock is caused by a single reason -- the filibuster rule. Each party refuses to change the rule when in power because each is afraid of giving up the right to block legislation. Blocked legislation, ad infinitum, is -- gridlock.

Our framers considered supermajorities and eliminated them but for a handful of circumstances, because they realized that supermajorities were all but impossible to achieve. Now you need to achieve a supermajority to pass a resolution proclaiming Thanksgiving day. No pressure on "outliers" to compromise, because they know that they have power to block a bill. That's why the health care bill has no public option or the provision, eliminated in the last version of the bill, that would have allowed Americans age 55+ to "buy" into Medicare (i.e., a de facto public option) -- i.e., six "blue dog" Democrats, and Al Lieberman, the Senator from Aetna, blocked it.

Nothing will change until the rules go back to what the Constitution intended -- vote by majority. The Committee is failing because all know that there is no reason to give up anything; nothing can pass unless the outliers are satsified.

Nov. 18 2011 10:53 AM
John A.

November Census says there are now 49 million Americans in poverty.
"We are not at rock bottom yet."
So, yeah, lets ignore them while the republicans continue to protect the millionaires, possibly for another 5 years.

Nov. 18 2011 10:43 AM
Rick from Connecticut

We are living in a delusional low treasury bond rate that defies our backrupt status. When the world market wake up anbd start charging us 7% interest, we will be like Greece x 30 overnight

Nov. 18 2011 10:42 AM
Jim

You must also consider the fact that we are buying our own bonds with newly printed money. It is not a real market.

Nov. 18 2011 10:40 AM
Robert from NYC

I call them the Stupid Committee and you're right, so what!! What's going on in Europe is played up to deflect from the "mishagosh" that's going on in Washington!

Nov. 18 2011 10:37 AM

Sometimes one has to hit rock bottom before one is ready to address the real issues. We are not at rock bottom yet.

Nov. 18 2011 10:20 AM

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