The Bear Traps Report founder and editor Larry McDonald argued the potential fiscal cliff will significantly impact the markets in a negative way if lawmakers don’t vote to avoid it on FOX Business’ "Mornings with Maria."
LARRY MCDONALD: There's a huge divergence in the market because we're at all-time highs and people have to realize we've done $6.5 trillion of deficit spending the last two years -- 6.5 trillion.
And Republicans and conservative Democrats want to take that down to 1 or 2 trillion. In other words, last year the deficit was 3 trillion total, 3.5. They want to take it down to 1.
That's, you know, $2 to 2.5 trillion fiscal cliff and the equity market is not priced for that. So we have a lot of drama coming the next six weeks as Republicans and Democrats fight this out.
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