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.
Web, can you explain to me how the Bush Administration's plan to come to the rescue of people affected by the mortgage debacle is *not* an example of "the nanny state?"
ReplyDeleteIf Joe Homebuyer makes $30K, bought a $400K house, got an interest only loan, which has now balooned to a payment he can't make and his house is about to be foreclosed, why exactly is that something that I personally should pay for? People make bad decisions every day of the week. Why should the government have to bail them out? Sounds like Nanny State Activism 101 to me.
p.s. Hope you're enjoying the British Isles. My parents were there in September/October - they liked Wales the best of all! What's it like dealing with the Muslim hordes over there?
I'm afraid, Vienna, I can't explain why Bush is doing this bailout; and fully agree with you that the taxpayers----that would be you and I---should not have to always cover for foolish investment mistakes that you and I make.
ReplyDeleteBush is indeed advancing the nanny state and I think he's making a short term quick fix for a much deeper problem.
Scotland has been terrific, but I am ready to return home soon.
BTW, just rode the train back from St. Andrews this afternoon and sat across from an engineer from Saudi Arabia who now lives in Aberdeen with his wife and child. We had a most pleasant conversation about a wide range of subjects.
ReplyDeleteGee...whoulda thunk it. First you and I find common ground on bailing out overextended homeowners, and then come to find out you have a nice conversation ...WITH A MUSLIM? Must be somethin' in the water over there. :)
ReplyDeleteFunny thing about them Muslims...like I try to tell you, they generally want the same things out of life that you and I do.
yes, well, I hesitate to tell you that I've known and had more Muslims over to my home for dinner over the years than you've probably ever met. I know that's not what you want to hear or think of me, but it's true. Turks, Iranians, Iraqis just to name a few.
ReplyDeleteI still think what happened at the Islamic Center in D.C. with Karen Hughes and company was ridiculous. Nuff said.
"I've known and had more Muslims over to my home for dinner over the years than you've probably ever met."
ReplyDeleteUm, well, somehow I doubt that, seeing how my family lived for two years in a city of 20 million people - about 90% Muslim. But if you say so.
I was half-kidding about you meeting a Muslim and finding them worth talking to. I'm certain your southern hospitality is shown to people of all faiths - and political viewpoints.
That's very kind of you.
ReplyDeleteActually, I'm not always that nice to Hindus or Jacobites....they tend to throw the rice all over the table...
it's getting late here in Edinburgh and I have a plane to catch very early in the morning.