All of my friends are rolling in the dough
Listen up all of you out there, you’ve never had it so good:
There is no bubble. There is no recession. And with core inflation a mere 2.1 percent over the past twelve months, the Fed can declare victory and go home.
The Dow is enjoying its best winning streak since 1955. It has risen in 21 of the last 24 sessions. The S&P 500 crossed 1500 this morning for the first time since September 2000 (when Dick Cheney first said that the economy was on the â€œfront endâ€ of a recession).
Now, as the Republican presidential candidates prepare for tonightâ€™s debate at the Reagan Library in Simi Valley, California, will they talk about the Bush stock market/economic boom?
Will they talk about George W. Bushâ€™s low tax rate economic strategy that rescued the economy?
Will they talk about the Democrats high tax strategy unveiled in their debate last week?
Will they talk about Ronald Reaganâ€™s low tax, deregulatory, disinflation restructuring of free market American capitalism 25 years ago that unleashed a 25 year long boom that has produced 95 percent prosperity with only 5 negative GDP quarters?
People sitting on the bubble seldom realize when it is about to pop. I’m sure that Larry Kudlow’s friends are doing swell. How are your friends and family doing?
Welcome to Irrational Exuberance II