Wednesday, May 11, 2005

Larry Kudlow Always Seems Bullish

He seems to be one of the few prognosticators that have consistently argued that the Fed should keep the cheap money flowing. According to Larry…

[In the last economic cycle the Fed ignored falling inflation and instead aimed its guns at the Internet bubble. We soon were reminded that any time you deflate the money supply, the overall economy slumps badly. Stocks delivered their worst performance in over 40 years. As for signs of inflation today, the price of metals and overall spot commodities are dropping, gold is going nowhere, and long-term bond yields are at 45-year lows. These tried-and-true inflation indicators are saying: “No inflation.”]


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