Co-Chair Down on Super Committee Deal
“Nobody wants to give up hope. Reality, to some extent, is starting to overtake hope.”
So said Republican debt committee’s co-chair Jeb Hensarling (R-TX), when asked by “Fox News Sunday” anchor Chris Wallace, if a super committee deal is dead. Hensarling went on to say that, “It's a huge missed opportunity.”
On why a compromise has yet to be reached, Hensarling pointed at the plans being put on the table by the committee’s Democrats. He added, “We are unaware of any Democrat offer that didn't include at least $1 trillion tax increase on the American economy. Now, again, it's not a matter of blame going on here. It's just a matter of fact. We believe that's bad for the economy.”
California Democratic Congressman Xavier Becerra, who also serves on the super committee, had a much more optimistic take on the state of the negotiations. He said, “I think we are deep in the fourth quarter, but there's time on the clock. We are trying everything possible to get there."
Finally, some have speculated that if a deal cannot be reached, the economy could be looking at a sudden dip in the stock market or another downgrade of the US’s credit rating.
Moody’s Analytics Chief Economist Mark Zandi believes that a “no deal” has already been built into the market’s expectations. On a possible downgrade of the credit rating, Zandi added, “I don’t think if the super committee fails...it will have any impact.”