Photo: Irwin-Scott on Flickr
Apparently not everyone is concerned that the U.S. is teetering on the brink of economic disaster.”On a positive note, we do not see the bare-knuckled fighting in Washington as a sign of failure on the part of our elected officials,” UBS strategist Jonathan Golub wrote in an investor note. “Rather, we are grateful that they are taking the situation as seriously as they are.”
Because everyone in Washington is behaving “seriously.”
Here’s what else he said:
– UBS is “quite optimistic” that a deal will go through, but is concerned about how politicians will deal with the $14 billion debt outstanding.
– The 2008 recession is the true culprit behind this “fiscal quagmire.”
– House Republicans and credit ratings agencies, in his opinion, are superstars.
– He makes 5 big recommendations for a “growth agenda”: In addition to tax and entitlement reform, free trade, a smaller military, and a pro-immigration policy will enhance economic growth. Could investors instigate a new immigration debate?
– Both retirees and taxpayers should bear the burden of entitlement reform, but the U.S. shouldn’t increase taxes.
– We desperately need a “growth agenda” to make corporate management less skittish, create new jobs, and increase investor confidence.
– Corporate revenues have been repeatedly underestimated and under-appreciated. It would behoove investors to realise this eventually.
– Markets will go big when politicians reach a deal and go home for recess.