Expert: deficit reduction supercommittee a ‘waste of time’

TRENTON – One expert predicts the United States will have to enter another round of credit downgrades, simply because of political gridlock and unwillingness to make structural changes in government spending.

 

Speaking Monday at the Garden State Economic Forum, Ethan Harris of Merrill Lynch called the bipartisan Congressional super-committee charged with coming up with a credible deficit reduction plan “a waste of time.”

He likened it to “summer vacation with the Red Sox and Yankees.” He added there isn’t enough “discretionary spending” in the federal government.

On the housing front, he said foreclosures remain a huge problem. He said it will be at least another one and a half years before there is any daylight in this market.

Expert: deficit reduction supercommittee a ‘waste of time’