OT: Barron's Says US in For Tough Time No Matter Who Is Elected
How it may turn out depends heavily on what happens a week from Tuesday, according to LSR. Most likely is an Obama win, with Republicans holding the House and Democrats holding the Senate, the London-based research firm says, in which case it sees extension of the Bush tax cuts, even for the rich, but with other tax hikes hitting. Spending cuts would be about half those that would come under sequestration. Bottom line: 2.25% or so sliced from GDP.
In the event of a GOP sweep of the White House and both houses of Congress, LSR expects only the payroll-tax cut to end, while spending cuts would be deeper, also totaling some 2.25% of GDP. A sweep by the Democrats would mean the end to Bush tax cuts and the most negative scenario for growth, off some 2.75%. Finally, Lombard Street Research thinks, a Romney win with the GOP holding the House and the Democrats keeping control of the Senate or the scenario of Obama's re-election and Republicans controlling the House or the Senate both would result in a 2.3% cut in GDP. The former would lean more to spending cuts, while the latter would result from a bipartisan agreement on taxes and spending.
"You don't need a degree from MIT to see what that would mean to an economy growing at 2% -- a severe recession," says Greg.
political extortion by the repubs. Everytime the president put something in front of them they said. They want him out and a repub president. This is truely a shame on the repubs part. We don't want him we want someone else so NO you can't do that Mr president, is this how democracy is supposed to work. Electoral vote, but a few get to tell us how the election will go. The populice vote doesn't matter. is this democracy?