Wednesday, October 10, 2007

Larry Kudlow and the CNBC Kool-Aid

Last night I watched some of the "analysis" of the debate on CNBC. Mr. "Wall St And Republicans Can do No Wrong" Kudlow was the moderator. After about 10 minutes of salivating over how wonderful each of the GOP candidates were, he turned to a little Hillary bashing. Now I like a good old fashioned Hillary bash as much as the next guy. But coming from Larry...puhleaze.

First he rightly called her on the ridiculous idea of giving every baby $5,000 just for being born. Awful idea he said. Socialism. Pandering to voters. Yes and Yes.

But then a funny thing happened to Mr. Kudlow. He found the IRA Jesus. Hillary has also proposed that every adult should receive a $1000 IRA/401k account courtesy of the government. Same idea right? If you oppose the notion of a $5,000 baby bond, then a $1000 IRA fund is wrong as well?


Nope. Larry was all for that plan. You see, with the $5000 baby bond, it sits in a govt fund somewhere earning interest. I'm not sure about where it would sit exactly, but I am guessing a US Savings Bond or US Treasury style set-up. And then when the kid is 18 that money is available for college tuition of a down payment on a house. Key point is nobody on Wall St. makes any money off of it.

On the other hand the 401/IRA plan would be invested in the stock market. KA-CHING to Larry and his Goldman/Merrill/Bear buddies at the club. So of course he is all for this plan. It is NOT socialist. It is NOT pandering. It is good for America damn it. Since we know that as long as Wall St makes money it must be the right thing to do.

Larry Kudlow you have once again shown what a sorry piece of hypocrite you are. You are not a true capitalist. You are a welfare capitalist. You want to privatize profits but socialize the risk. When Goldman execs get $100M bonuses they keep it all. But when Goldman loses $5B in mortgage junk, the government has to come to the rescue or even worse your beg and plead with Ben Bernake for a rate cut. And the saddest part about is you don't even see the contradiction in your views.

It is people like you that give capitalism a bad name. It is people like you that allow Hillary to shine. It is your "let them eat cake" mentality that will lead us back to the days of 70% tax rates. Cuz guess what Larry? Everyone gets one vote. And when the masses see hedge fund managers making more in an hour than they make a year, they get pissed off. And when the masses are pissed off, usually bad things happen and horrible laws are enacted to "fix" problems. You don't know it, but right now you are the best advertising money can buy....for Hillary.

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