Program: Your World with Cavuto
Station: Fox News Channel
NEIL CAVUTO: Let’s take a look at the corner of Wall and Broad today, all the major market averages up on the day, but down on the week. What is interesting to discuss as the markets continue to hum along bumpy days notwithstanding, is what is driving it right now. And it could be again, this is on the week we were down, but we had appreciable advances on the day again on talk that maybe this package, the big one, the one point eighty five trillion dollar one doesn’t get done this year might be even dicey for next year. Now we’re coming to discover that a lot of the tax hikes that a lot of folks were fearing might not materialize either. Or at least they’re being watered down. Welcome news to Scott Martin, the Kingsview Asset Management market watcher here. Now to weigh in Scott, could some of the market’s resilience be the growing expectation that this package won’t be what they feared if it comes to pass at all?
SCOTT MARTIN: Yeah, it definitely could be. I mean, you look at the infrastructure plan itself over the last several months, it’s come down in price. I mean, I guess we’re kind of lucky that it’s just a nose about a trillion because it started well above two trillion. I think Biden wanted even higher than that. So I think you’re right. I think the market is starting to see maybe through the clouds here that maybe a lot of this stuff isn’t going to be as onerous as feared. But the reality is this we still don’t have it paid for Neil, and we’re coming up on 30 trillion of dashiell debt. We still don’t have a tax plan in place to cover a lot of the prices or covers at least a lot of the cost of this thing. So with respect to how the Biden administration not only sells it to Americans but pays for it, that’s really where I think things come out in the wash when we see what the markets do in response and
CAVUTO: very strange sort of an upside down settlement in terms of cobbling this together. Scott, where you probably heard that they want to get salt in this, that is the lift the limitation on state and local taxes from ten thousand maybe as high as 80000 or more. The beneficiaries will be the very rich who were supposed to get gouged by this in the first place. That’s not sitting well with a lot of Democrats. I’m wondering if that’s a sign this thing could look bumpy.
MARTIN: Yeah. And I think if you look at the impacts that the inflation situation has had on the lower and middle-class Americans that Biden professed to absolutely protect and the overall economy, those are the folks that are actually suffering big-time from what’s happening in the administration. So with respect to how they’re handling things, and as you mentioned earlier, with respect to going out and spending over the holidays, filling up your car with gas, buying things for the kids, a lot of Americans are seeing the pinch that the inflationary craze is having on their wallets.
CAVUTO: Are they growing frustrated right now that whatever gains they’re seeing in wages and the administration’s argue that that’s the underlying strength in the economy and this supply and demand issue is is really a reflection of the strong economy that’s tough to sell people who are maybe earning more, but paying out more.
MARTIN: Yes, and President Biden has said that this is actually a wage phenomenon with respect to how strong the job market has been. That’s partially true, but if you look at the inflation rate and its increase over the last several months, it’s well outpacing wage increases. So if you’re somebody that’s making more wages than you were, say than the pre-pandemic, you’re seeing higher prices on what you’re spending. So that gap is definitely widening. And something that you’re going to feel definitely over the holidays.
CAVUTO: All right. We’ll see what happens. Got very good. Catching up with you. Scott Martin.