A majority of top Wall Street bond dealers and money managers say spending cuts alone cannot solve the U.S. budget problems and tax increases must be part of the mix.
In a Reuters survey conducted on Tuesday, 17 out of 29 fund managers and economists representing major Wall Street bond dealing firms said the Republicans’ favored option of spending cuts alone would not a work.
In contrast, of the money management firms in the Reuters survey, which oversee nearly $2 trillion in investments, 13 favored a mix of spending cuts and tax hikes.
So bond dealers and money managers, unlike Republicans, recognize that solving the budget problems require a combination of tax increases and spending cuts. Of course I don’t really care what bond dealers and money managers and their Wall Street brethren think about solving budget problems. But it’s fairly remarkable that even people who are very conservative and normally side with Republicans are capable of recognizing that increasing revenue has to be part of the equation here. Maybe someone should show them the Congressional Progressive Caucus’s budget?