Thursday update: What's in the drinking water at Davos? Davos again? Ho Humm, just another celebrity smoozefest that even Hank Paulson didn't bother to attend this year. Larry nails Bill Gates.
UPDATE: DOW UP ALMOST 300 points! Volatile and resilient.
I like what Larry says and couldn't agree more. While it's a gully washing correction, it's not the end of the economy or the world as we know it. Markets, like rivers, need room to roam. And remember, the MSM always catastrophizes everything, usually out of sheer ignorance.
We need to pipe down. The highlights of Kudlow's post:
"Stock market corrections and economic recessions come and go. It’s the nature of a free economy. Add to that Schumpeterian gales of creative destruction, as technological advances bring down old industries in favor of new ones. Turbulence is part of capitalism.
But Tuesday’s turbulence should not dissuade investors from buying stocks for the long-run. This strategy essentially argues for investing in America, which has produced the greatest prosperity in the history of history. I do not see this changing. Right now the stock markets have corrected by roughly 20 percent -- the first time in about five years that we’ve had a true correction. To me this means there are a lot of bargains out there. In fact, the market averages at these levels represent good bargain prices. "
As he says, turbulence is a healthy part of capitalism.
Meanwhile, Hillary, Mrs. Government-side economics (Let me and the federal government fix everything for you poor dears) predicts---aka, hopes for---a long and deep recession where she, as president, will have to work very, very hard to make it all right for us.
Thanks, but no thanks, Hillary. I'd rather have a V-8.