Howard Ward, GAMCO Investment’s Chief Investment Officer of Growth Equities, was on Squawk Box this morning and we couldn’t help but notice he said one thing that made Joe Kernan’s hair stand on end.
“I fully expect the Bush tax cuts to expire for everyone,” he said. “I don’t think there’s going to be a deal with this Congress before the year is out, and that’s going to create a $427 billion fiscal hole going into next year…That’s almost 3% of GDP.”
Yikes. Ward goes on to say that when the cuts do expire, the White House can argue that it’s good for cutting the deficit and “then they can blame the Republicans for the taxes that are going to be raised on the 99%.”
Yet again, it seems like he’s talking about a money problem being put through the political ringer. It’s going to be a headwind to the economy, Ward explained, especially when the stock market starts looking to 2013 in another four of five months.
Joe Kernan broke in saying that this whole scenario depends on November, but Ward disagreed. The cuts will expire regardless of who is President, he said.
And, of course, Congress will still be Congress.
You can check out the video below.