Steve Forbes Warns of New Obama Recession if Re-Elected
“I think Romney will win the election against Obama. But if you have a good conservative core in the Senate you’re going to get things on his desk, the president’s desk, that I think are going to be much stronger for the country, much better for the country, than if they weren’t there.
“So this isn’t just about winning a particular race, it’s also about having the cadres, so to speak, who can make positive things happen.”
Fed Chairman Ben Bernanke has warned of a pending fiscal cliff that the nation is approaching. The Bush tax cuts are set to expire on the first day of 2013, and deep spending cuts are also in the works.
Asked if lawmakers in Washington will be able to deal with this “cliff” without causing turmoil in the markets, Forbes responds: “After the November elections, if President-elect Romney makes it clear that he’ll sign temporary legislation on January 20 extending those tax rates for a few months so Congress can make deliberations on a whole new tax bill, I don’t think the markets are going to have much of a hiccup. I think they’ll make the Bush tax rates retroactive to January 1.
“So the key is who wins the election. If Obama happens to win, I think you’ll see a market selloff. I think we’ll be on the way to another recession. And I think the markets, if they anticipate Obama will win — markets don’t wait for a bad thing to happen, they sell off before it happens.”
http://www.newsmax.com/Newsfront/forbes-obama-win-recession/2012/04/04/id/434833
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