The so-called "fiscal cliff" is a good thing for Washington because it will force both Democrats and Republicans to cede ground on core issues, Whitney Tilson of T2 Partners said Friday on CNBC.
Tilson, a supporter of President Barack Obama and fundraiser for his re-election campaign, said that he expected resolution of the "fiscal cliff" would involve increasing taxes and eliminating deductions, as well as one important area: "Democrats are going to have to touch the third rail for them, which is entitlements, and Obama, I think, is willing to do that," he said on "Fast Money."
"Every Democrat I talked to is willing to do that, but only in the context of Republicans giving on the tax and deductions side aimed more at wealthiest folks in this country who are the ones that can afford to give more."
Tilson said that he believed voters in the presidential election were sending a message: "Stop playing politics and start working together to address the serious problems this country faces."
Tilson expected good things to come from budget negotiations in Washington.
"I'm actually pretty optimistic," he said. "I love the 'fiscal cliff,' and the reason is, is because I think it's a forcing mechanism that's going to cause both parties to touch their third rail. Republicans are going to have to touch the higher-taxes-on-the-wealthy third rail. Democrats are going to have to touch the entitlements third rail. And this 'fiscal cliff' is a beautiful thing to make that happen."
Anthony Scaramucci of SkyBridge Capital said that the deal should result in the "death of sacred cows."
(Read More: Tax Hike 'Not Going to Happen': GOP Official)
"Both sides have to kill their cows," he said. "The entitlement spending has to be curbed. And we're going to need revenue increases if we're going to solve this structural imbalance."
Scaramucci, Mitt Romney's campaign finance chairman, said that he expected a deal to get done and disaster to be averted.
(Read More: Up-to-Date Coverage of the U.S. Fiscal Cliff)
"This is the scene where Han Solo and Luke Skywalker are in the garbage compactor in the Death Star," he said. "The walls are closing in, and these guys gotta cut a deal to get themselves out of it, and I think they will."
Trader disclosure: On Nov. 9, 2012, the following stocks and commodities mentioned or intended to be mentioned on CNBC's "Fast Money" were owned by the "Fast Money" traders: Jon Najarian is long AAPL; Jon Najarian is long GLD; Jon Najarian is long SLV; Jon Najarian is long SQNM; Jon Najarian is long GLW; Jon Najarian is long STSI; Jon Najarian is long CME; Jon Najarian is long CBOE; JJ Kinahan is long AAPL; JJ Kinahan is long BAC; JJ Kinahan is long GS; JJ Kinahan is long WFC; JJ Kinahan is long CSCO; JJ Kinahan is long SBUX; JJ Kinahan is long FB; JJ Kinahan is long MSFT; JJ Kinahan is short SPY; Joe Terranova is long VRTS; Joe Terranova is long SBUX; Joe Terranova is long SWN; Joe Terranova is long TRV; Joe Terranova is long VZ; Joe Terranova is long XOM; Joe Terranova is long CVX; Joe Terranova is long GS; Joe Terranova is long GLW; Brian Kelly is long GLD; Brian Kelly is short XLF.
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