Dec 18, 2012|
What's Up On Wall Street - Joe Deaux, The Street
Transcript - Not for consumer use. Robot overlords only. Will not be accurate.
And watch in the market all morning we had a good day for stocks yesterday -- a hundred points. And about five minutes ago we got housing -- the national association of homebuilders index comes in at 47 now. To put this in perspective -- -- and what does it mean when it's 47 well. This is what it needs its highest reading that we've had on that index since the year 2006. That's sick more than six years rates as we've had a reading the strong. Yet the stock market is not moving on so must not be perceived by Wall Street as terribly important data. If the markets not moving on the news because I've public into the market Jeanette in. It started off pretty good. But right now I think report doctor four point it's it's pretty much the same from the open Wear green and were up slightly so just -- the our guest is Joseph -- from thestreet.com. Joseph -- things. -- -- we're trying to decipher in in May -- you've got more information that we have we're trying to get our arms around with this. Temporary tax deal is gonna look like the one that's being negotiated by between Boehner and Obama can't we can you tell us what you've learned so far. Well they are gonna come out actually in prize. This morning and and talk a little bit more hit his spokesperson came out last night basically that the peak. The latest proposal the president wasn't necessarily enough in terms of getting. -- balanced approach. But what will we got is when a lot of analysts have been telling me is. How will will make some concessions that'll get us at least you know through the beginning of the year demand will wait for the new congress to comment. And hash out of huge -- Korean deal grand. Bargain if you will. That -- don't want I mean obviously Boehner has been saying we won't raise taxes we will raise taxes but only of those earning more than one million dollars for the market marginal rates and then the president. Now is sticking to 400000 dollars or more of income. That would be the taxable income he would like to increase. And you need to get a little different and spent. -- -- And obviously a little different in ten -- revenue and so that's kinda. Generally where we sit at this. Joseph let me ask because this is really important. Dividends in capital gains I saw a -- of its it capital gains rate goes to 20% but what I'm unclear about. Is -- capital -- gains -- go to 20% from its current level fifteen for everybody or just people that are 400 above is that with the brown wants to. Well yeah I mean we'll see I mean obviously that's been one of the big points here as well okay are we gonna. It -- rates for everybody or is -- just gonna be certain income levels and you know specifically for. For the -- didn't give ornery person is what we don't know I mean it's like where Reagan Reagan and former former budget. And David Stockman said in an interview with the Atlantic back in 1981 he said. -- really understand what's going on all these numbers and I think we're sitting at that point again and that's because the budget as. And I think I think that's an easy thing for people to look at the old one except it certainly cut batter what -- in the -- on this it's because. It is it's just like you and nine sitting down and things this -- I can. For each week on my you know on the incumbent I have to and that's what we're doing with the budget really mean. There's nobody senators and representatives he don't want their programs cut in their in their states and in their districts and yet. Speaker and her President Obama Harry Reid have to sit down and say okay. You guys can make these cuts and so you know will will that happen I think it's difficult for any of these analysts seek to give you yes sir -- Joseph do we get a Santa Claus rally if we get a deal done let's say Friday afternoon 3 o'clock. The they come to terms and they agree and they sign off on everything do we get a real nice rally after Christmas. You you might I mean there was one there was one trader -- spoke to last week he said. You know you you wanna get this deal done when people are at home for the holidays. Eat you wanna get done on the markets open because why because people want to jump handles it like that -- the way he was saying what if they reach a deal people wanna be in the markets. Open and won a seat they can make a little bit of money off that cell. And maybe the answer is yes. And. Point this is really fascinating is it's getting more and more interesting by the day because. It's it's like opening up this present right in just don't really you don't it's all wrapped up and you're trying to get to the bottom -- -- we just don't know what's in there. You know it it's it's fascinating thank you very much to appreciate. Like that's Joseph -- from thestreet.com. And Italy eight. Be what I always hoped June was eight and new taxes were gonna go. Right and just it was a given what's that the elections were over in November said to myself. Tax rates -- Lisa that before the election to -- -- and Betty well evidently it was a foregone conclusion once the election was. Will Vick wants Obama had one. Right they knew new. And if -- if -- push that number raiders because Obama was headset on that 250 level right you push it up to. Four maybe 500000. And it affects so many fewer people a lot of people that make between you know 250 and 500. There's. Very few taxpayers that make over half -- and a box again you know and I'm thinking too I think a lot of folks out there are also considering what they're gonna do it for folks over 250. What are they gonna do it 34 years from now folks over 150 RA I mean I price up that's what I think. I had a good right now. Would Boehner is is looking for are spending cuts you know he seems like I think he I think he would take the 400 number I think he if he gets that 400 number. He's won he's got huge victory that 400 number. Where I think ease -- moving. Is he's looking for spending cuts and I think the president has been very short -- terms of what he has offered up in in the waves spending cuts.