Honeywell Chairman and CEO Dave Cote participated in a segment on CNBC’s Squawk Box this morning to discuss strengthening the American economy. In the discussion with Squawk Box co-hosts Becky Quick, Andrew Ross Sorkin and Joe Kernen as well as former U.S. Senator Sam Nunn, Cote discussed possible outcomes of the fiscal cliff dilemma.
“There's a series of outcomes – one, let the fiscal cliff happen, which I truly believe is a disaster and will create a recession worse than what the CBO predicts. The second alternative is kick the can down the road so the cliff doesn't happen but the uncertainty lingers because you have no idea what's going to happen. The best outcome would be they actually solve it in this lame duck session, but they can't do that.”
Cote continued, “I've said many times that the Fiscal Cliff is a potential disaster or a potential opportunity, and if playing with the debt ceiling the way they did was playing with fire, then this is playing with nitroglycerin. We need to get enough market certainty and feel comfortable that these guys are actually being responsible with the country's finances. To me, that's where the third alternative plays. Sam Nunn said that maybe we can kick the can down the road six months but substitute in a Simpson-Bowles or Rivlin-Domenici plan. I like it a lot because it gives you the time you need to think but it creates something that's real, that people can start focusing on that can cause different mental dynamics.”
Watch the full video on CNBC’s website.