U.S. Deficit Will Fall Dramatically: Valliere

Your next video will start in

Recommended Videos

  • Info

  • Comments


Dec. 13 (Bloomberg) -- Potomac Research Group's Greg Valliere comments on the U.S. budget agreement. He speaks with Mark Crumpton on Bloomberg Television's "Bottom Line." (Source: Bloomberg)

Write the deal eases the effects of sequester.

Kurt occurred and another government shutdown.

But it does not put the country on what steny hoyer's comments about a fiscally-sustainable path.

Was this a missed opportunity to do something big?

We could have been bigger.

But this is washington.

We never could get a grand compromise.

I would disagree about this extent.

The deficit will continue to fall dramatically.

The new focus is not going to be outraged.

It will be on revenues.

We will see a pleasant surprise.

Greg, speaking of deficit, and the former libertarian candidate for president gary johnson, he put out a press release that reads in part, are we supposed to be impressed that the deficit is almost $700 million?

-- seven under billion dollars?

And these folks are crowing about a deal that will save $20 million.

-- $20 billion.

For taxpayers, for businesses, for the markets, we now have some predictability and stability.

For a year and a half, this deal goes until the fall of 2015. that kind of stability removes a big headwinds from the economy.

A year ago today, we had enormous headwinds.

Threat of a shutdown, higher taxes, none of those headwinds are present now falls out as you speak about headwinds, paul ryan long senator patty murray, he said that the deal provides certainty to the u.s. economy, what does it say that even a small deal could give this economy some momentum?

It removes all of the question marks in my opinion.

We do not have to worry about another shutdown.

For a lot of businesses that have been hesitant to invest, we are removing that obstacle and uncertainty.

You talk about the debt ceiling, and as we know, this is a temporary truce.

There is a fight upcoming, and for all the talk about compromise, you don't feel we are headed for another round of political back in or next month?

It is not come by -- kumbaya time in washington.

The senate will very narrowly approved a steal and now we have to worry about appropriators getting something done to generate 15. there are a lot of contentious issues, whether it is tax reform or immigration reform, or as you mentioned, the need to raise the debt ceiling.

I feel strongly that the republican leadership has decided that they will not play brinkmanship again.

Like that leadership is coming from john boehner.

How difficult is this for him?

This is a big story.

In my city, we may be parochial insular, but this story is about how eagerly he repudiated paul ryan.

This will work for be 84 weeks and weeks.

Despite within the republican party.

There's is one player who emerged as a big winner who is a popular player in both wings of the republican party.

It is paul ryan.

It was a big week for paul ryan.

If i have to ask you about the markets.

They seem to like what they heard today at least.

How do you think the markets will continue to react to this going forward?

Is this the certainty that the markets needed?

This part of the story, the physical part of the story, has been settled.

Now you have a new concern and that is the monetary part of the story.

I say ironically because over the next week or two, what the fed is going to do with tapering will become the focus.

It looks to us, and we have a former chairman who believes that after the sales report on thursday, the fed will start to taper next week.

I-55 have all the information that it needs?

Does that certainty inhibit the economic data over the last few months?

Some people at the fed would prefer to wait another month or two.

The direction is pointing towards stronger than expected growth.

That is enough for the fed to do a very modest taper next week.

Greg valliere, joining us

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


BTV Channel Finder


ZIP is required for U.S. locations

Bloomberg Television in   change