Congress Relying on Fed for Fiscal Policy: Stockman

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Oct. 1 (Bloomberg) -- In today’s “This Matters Now,” former Office of Management and Budget director David Stockman talks with Tom Keene about the Federal Reserve’s role in the United States economy and his view that Congress will not come to an agreement on the debt ceiling, putting the U.S. into default. He speaks on Bloomberg Television’s “Bloomberg Surveillance.”

Fiscal people a wide run.

Absolutely, the congress has gotten so cynical about fiscal policy and the massive are a winning we are doing every month because they believe the fed will buy the debt if all else fails.

The fed will keep interest rates suppressed so therefore the carried costs is manageable and not worrisome.

As a result, they are simply playing games like those we see before our eyes this morning.

It will continue until the fed lets the interest rate rise and lets the market and the beltway find out the true cost of carry over the long run.

Then there will be fear and then maybe they will mobilize and sober up or . jpmorgan put the key in the door and locked the door until the crisis of 2007 was fixed.

Do we need a room with john boehner and harry reid in a room and throw away the key?

That would be a good idea but jpmorgan did not have a printing press.

Even though he was a huge power on wall street, he had to resolve the power -- the crisis of that power by choosing among the solvent and in solvent.

Let the insolvent go and nobody was going to tell out the street like they did in 2008. those are the days when financial rectitude and consequences of choices still made a difference.

How do we get responsibility?

Republican or democrat, how do we get the adults to take over in congress this morning?

They will not take over this morning or next week.

We will stumble from one mini0- crisis to another for weeks to come.

This shutdown may last a few days but it will bleed into the debt ceiling which is the big issue.

I doubt whether they will pass a debt ceiling by october 17.

This text has been automatically generated. It may not be 100% accurate.

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