Blodget: One ‘Tremendously Good’ Factor for US
Although capital gains taxes could rise following President Barack Obama's re-election, something else signals a positive factor for the U.S. economy, Business Insider CEO Henry Blodget said Wednesday on CNBC.
On "The Kudlow Report," Blodget was asked if it was possible investors were jumping to worst-case conclusions too soon on a day that saw a 2 percent drop in the stock market.
"I think it's likely that capital gains are going to go up a bit, not punitively, but a bit," he said. "So the fact that investors are taking advantage of that, selling now and so forth makes perfect sense."
But the most positive sign for the economy was a signal that Republicans would work with the White House to reach a budget deal and avoid the "fiscal cliff," which would see an expiration of the Bush tax cuts and trigger automatic federal spending cuts in January.
(Read More: Obama's To-Do List: What He Plans for a Second Term)
"That did not happen in the first term, and it's why we have just done nothing with the huge debt and economic crisis that we've got in front of us," Blodget said, adding that it was "a tremendously good sign for this country."
Blodget also rejected the idea that an Obama administration was bad for venture capitalists.
"Venture capital is alive and well," he said. "The reason they're not deploying it has nothing to do with regulation in technology."
Consumption, or lack of it, he said, was the issue.
Jim LaCamp of UBS countered.
"The Kudlow Report" airs weeknights at 7 p.m. ET.
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