Pelosi: Stock Markets 'Trust We Would Not Be So Stupid as to Go Over the Cliff'

December 13, 2012 - 5:01 PM

(CNSNews.com) – House Minority Leader Nancy Pelosi (D-Calif.) said what she views as optimistic market data is a sign that investors believe an agreement to avoid the so-called “fiscal cliff” will be reached, that the markets "trust that we would not be so stupid as to go over the cliff."

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House Minority Leader Nancy Pelosi (D-Calif.) (AP)

At a Capitol Hill press conference on Thursday, Pelosi said, “If we agree that we will have a solution and that we will avoid the cliff -- I think we all should agree to that -- then what are the steps we need to take and how quickly can we take them, so that we at least have a week of consumer confidence that can improve?”

“But we have a week where it comes to an end, where the markets have the confidence to go forth,” she said.  “So far, they [the markets] trust that we would not be so stupid as to go over a cliff. The markets have reflected some optimism I believe in that regard.”

Later, a reporter asked Pelosi, “You said, so far, that markets so far have been fairly confident that there’s going to be a deal here—”

Pelosi interrupted the reporter and said, “I’m just thinking that that must be why the markets are doing so well.”

“And I think that’s what most market people suspect as well,” said the reporter.  “What should markets  be looking for as clues to whether or not we’re going to get a deal or not a get a deal?”

“Well, I think, first of all, when the four leaders met with the president, we came out with fairly positive statements,” Pelosi said. “We talked about [how] we wanted to avoid the cliff, we agreed that we wanted to avoid the cliff, that we knew that there had to be the elements of cuts, of addressing the entitlements and having revenue.”

Both congressional Republicans and President Barack Obama are attempting to work out a deal to avoid the “fiscal cliff” at the start of 2013, when the Bush tax cuts expire and spending cuts (sequestration) take effect.

According to reports, stock market investors have been taking less risk in recent weeks due to uncertainty over fiscal cliff negotiations between the White House and House Republicans. Stocks also decreased following Speaker of the House John Boehner’s (R-Ohio) remarks at a press conference Thursday morning.