Place Your Bets on the Super Committee

Reuters
John Hudson 517 Views Nov 17, 2011

The likelihood of a Super Committee deficit-reduction deal by Nov. 23 depends on a slew of moving parts. But that hasn't prevented banks, politicians and reporters from venturing a guess at the odds of an 11th hour agreement. It's not a science but with America's credit rating potentially at stake, the impasse has had political risk consultants and market analysts scheming up probability outcomes. Below are the predictions we've seen so far with "failure" defined as a stalemate between Democrats and Republicans resulting in sequestration, "success" as an agreement on $1.2 trillion in savings, "going big" as a deal larger than $1.2 trillion and "partial deal" as something less than $1.2 trillion:

-Eurasia Group analysts: Failure: 15% Success: 85%

-JPMorgan Chase: Failure: 15% Success: 30% Going Big 5% Partial Deal 5%

-Democratic Senator Dick Drubin: Failure: 50% Success: 50%

-Democratic Congressman Jim Clyburn: Failure: 50% Success: 50%

-Erskine Bowles, former chief of staff of President Bill Clinton: Failure 50% Success 50%

-Mike Allen, chief political reporter for Politico: Failure 60% Success 40%

-Bo Cutter, senior fellow at the Franklin and Eleanor Roosevelt Institute: Failure: 10% Going Big: 0% Dismantling trigger and kicking can down the road 90%

-The Washington Research Group: Failure: 75% Success: 25%

-Luke Russert, NBC News Capitol Hill correspondent: Failure: 99.8% Success: 0.2% Going Big 0.02%

What you see is a sort of sliding scale of pessimism, with institutionalized groups such as analysts from Eurasia Group and JPMorgan Chase more optimistic, politicians and staffers estimating 50-50 odds, and journalists and think-tankers projecting the most pessimism. So unless you're pining for a Super Committee impasse, better hope the journalists are wrong. We'll keep tracking predictions as they emerge.

Want to add to this story? Let us know in comments or send an email to the author at jhudson at theatlantic dot com. You can share ideas for stories on the Open Wire.

Related Articles   More by John Hudson

The Super Committee's Great Escapes

Comparing the GOP and Democratic Super Committee Proposals

Republicans Feel Really Bad About the Super Committee

 

R.J. Cutler: What I Read

Gavin Newsom: What I Read

Elsewhere on the Web

User Comments

Please type your comment and click Post. If you’re not already logged in you will be prompted to log in or register

  • The Atlantic Wire on Twitter
  • The Atlantic Wire RSS Feed
  • The Atlantic Wire iPhone App