FORTUNE Magazine Alan Simpson paints dire market outlook
One of the co-chairs of the deficit commission doesn’t expect compromise on the fiscal cliff: Congress is “totally confused.”
By Allan Dodds Frank, FORTUNE (12/04)— Prepare for an increasingly rough ride in world stock markets as the march toward the so-called fiscal cliff continues in Washington, predicts former Sen. Alan Simpson, R-WY., who co-chaired the 2010 “National Commission on Fiscal Responsibility and Reform.”Simpson expects financial markets to roil as extremists on both the right and the left continue to be determined to propel a tumble over the so-called ‘fiscal cliff,” now set for year’s end.
At the moment, the possible compromise he envisions would be no more than a tentative non-partisan agreement. He sees it emerging just before New Year’s Eve and heralded by an equal number of Republicans and Democrats scribbling a one-page outline on a scrap of paper. That proposal would separate Social Security reform, agree to reduce Medicare and cut the defense budget.
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In a speech in New York City Monday to a non-partisan, politically-attuned group called The Common Good, Simpson said the stalemate that appears to be playing out in the news may be what is really going on in Washington with Congress, even behind the scenes.
“I don’t really feel they are playing games now. I think they are totally confused,” Simpson said. “But they know the President has one basic thing on his mind: raising taxes on the rich and let me tell you folks: That’s going to happen.”
On Monday, December 3rd, 2012, former Republican Senator from WyomingAlan Simpson, co-chairman of the Simpson-Bowles plan and a key figure in the budget reform debate, spoke to members of The Common Good.
The plain spoken former senator provided an intimate briefing on the impending “fiscal cliff” and prospects for a bipartisan solution to these problems.
With debate on the “fiscal cliff” dominating Washington and the national news-cycle, it was a great opportunity to hear the ultimate insider’s view on how or whether our political parties find common ground before the US goes over the “fiscal cliff” at the end of this year.
ALAN SIMPSON EVENT PHOTOS
Additional event photos on our Flickr site.
For more on the event, see the event page here: http://thecommongood.net/2012/11/tcglive-senator-alan-simpson/