Wall Street sees House GOP cuts as 'drag'
Tribune Washington bureau -- by Lisa Mascaro
WASHINGTON — The spending cuts approved by House Republicans would act as a drag on the U.S. economy, according to a Wall Street analysis that added new pressure to a raging political debate in Washington.
The report by the investment company Goldman Sachs said the cuts would reduce the growth in gross domestic product by up to 2 percentage points this year, essentially cutting in half the nation's projected economic growth for 2011.
The report, prepared for the company's clients, represents the first independent economic assessment of a congressional budget fight that could lead to a government shutdown as early as next week.
Nonetheless, Republicans are unlikely to retreat from their insistence on more than $60 billion in reductions in federal spending as a condition of continuing funding for the government through the rest of 2011.
A spokesman for House Speaker John Boehner of Ohio said the Goldman report represented "the same outdated Washington mindset," comparing it to the thinking behind the 2009 Recovery Act that released federal funds to counter the effects of the recession.
But Democrats quickly seized on the report as a validation of their arguments against Republican cuts.
"Just as the economy is beginning to pick up a little steam, the Republican budget would snuff out any chance of recovery," said Sen. Charles Schumer, D-N.Y...MORE...LINK
Chris Moore comments:
What a surprise: Wall Street banksters in bed with the Big Government Fed and the Democrat Party, who make hundreds of millions for clerical tasks like managing government bond sales to pay for all the spending, don't want the taxpayer-thieving gravy train to end. And lo-and-behold, there's Chuck Schumer, who no doubt gets fat "political contributions" from has bankster buddies, greasing the skids for the entire scam.
This is how Big Government and crony, government-connected big business, including fascist defense industry contractors, contribute to socialist outcomes that always end either in bankruptcy, or mass murder, or both.
These greedy, unpatriotic mooches don't care about this country or its financial solvency; all they care about is short term profit and lining their own pockets and getting rich at the public trough so they can retire to the tropics, or to some financially viable country that hasn't let parasites like this take over the system.
And the richest of them all, the international bankers like Goldman Sachs, are in bed with the Democrat Party, supposed defender of the working class.
What a disgusting fraud.