A re-election victory by President Obama in November will lead to a market selloff and another recession, Forbes magazine editor Steve Forbes tells Newsmax.
Fed Chairman Ben Bernanke has warned that the nation is approaching a fiscal cliff. The Bush tax cuts are set to expire on the first day of 2013, and deep spending cuts are also in the works.
In an exclusive interview with Newsmax.TV, Forbes — who sought the GOP presidential nomination in 1996 and 2000 — was 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.”
See video below.
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