Well-known billionaire investor Wilbur Ross was on Bloomberg to share his outlook for the U.S. economy. He thinks that the U.S. economy in the fourth quarter was not very strong and it is not strong versus where it should be coming out of a recession.
-- U.S. economy in the fourth quarter was not very strong, even excluding the noise in the data due to Sandy and long shore strike.
-- U.S. economy is not as strong as it should be in the recovery cycle.
-- Cut in government spending also had impact, but there is never a perfect time for cut in government spending and it is something which has to be done. Automatic cuts coming in defense spending are not necessarily a bad thing.
-- On the private side, businesses are still holding on spending due to uncertainty on budget and other policies in Washington. Consumer was shocked to see a paycheck cut due to rollback of payroll tax cut and that continues to impact the economy in the U.S.
Credit and source: Bloomberg TV, www.bloomberg.com
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