The next recession is the depression.
translation: So much of the private sector is now feeding on the umbilical cord of Government spending that fiscal reform will most certainly cause a recession.
“thanks to spending cuts”
...spending cuts?!
“””The real killer is going to be the next recession. “”
The CURRENT recession ain’t so great, either.
The whole interview is great. Gundlach, Einhorn and Bass are fantastic investors in this era. People need to pay attention to what these guys say.
“It will be policies in terms of raising taxes and cutting spending that help to bring on the next recession I think, so I don’t think it’s very plausible that you’re going to just turn around and go back to the old method of pumping up the economy with debt…”
This is the cost of “austerity”. These two items will place huge headwinds on the economy and will send us into recession. Just look at Greece and Spain and Italy. The answer is not to stifle the economy but to put pro-growth policies on the table. But Obama, Boehner, et al do not understand that the only way out of this mess is economic growth. What they are all looking to do will shut it down.
Bookmark.
Good stuff here. the Fiscal Cliff discussion is a joke:
On fiscal cliff talks:
“Something is going to get done, it looks like, between John Boehner who has now blinked a little bit going with the million dollar tax bracket and the president going with the $400,000 tax bracket. They’re getting close, but this is all just a big circus really. We have a $3.6 trillion spending going on at the federal government and they’re taking in $2.3 trillion dollars. So the shortfall is $1.3 trillion and what we are talking about with the million dollar increase is about $20 billion of revenue that would be brought in. At the $400,000, you’re talking about maybe $35 billion. So this is just masking a huge fiscal issue. The issue isn’t the fiscal cliff. The issue is the fiscal crisis that the United States has been looking at for the past several years and this is sort of a down payment on finally some fiscal reform.”
“Gundlach is concerned about the prospect of another recession, which he thinks will happen thanks to spending cuts.....”
When he says “spending cuts,” he’s referring to the “Unicorns that dwell in the Leprechaun Forest.”