Saturday, January 5, 2008

THIS JUST IN: Kudlow says we need a rate cut

Man I can set my watch by this joker. Market takes a big shit, and within 24 hours good ole Larry Kudlow writes that we need a massive rate cut.

Larry knows better of course. He's a smart guy. He knows that a rate cut will accelerate inflation. He knows but doesn't care. All he cares about is pumping up the stock market. He's a Wall St guy so that makes perfect sense. I would do the same thing in his shoes.

But please Larry spare us your concern for the middle class. If the middle class were to take a 50% pay cut but you made an extra $10 you'd take the deal.

And Larry is stunned that populists like Obama and Huckabee are doing well. It should be quite obvious Larry. People read about the CEO of Goldman Sachs making $65M in 2007. They read about the CEO of Countrywide selling hundreds of millions of stock in 2007. They also read about Merrill Lynch, Citi and Bear Sterns losing tens of billions of dollars yet making record bonuses in the billions. All this while the cost of food, gas, heating oil, electricity is increasing by double digits. And yet the Republicans' biggest worry is corporate tax rates getting cut? I would be stunned if a populists weren't front runners in this environment.

My advice to Larry would be take a week or two and get out of lower Manhattan and the Upper East Side. You might start understanding why the populists are gaining support.

If you and your cohorts don't stop, someone like Obama or Huckabee will be president. And taxes will go up as will government spending. The more you yap about helping Wall St, the more you hurt your cause. I like low taxes as much as the next guy. But you don't call for low taxes for billionaires when people are losing their jobs.

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