I was happy to see another guy that gets it. It's a shame clueless Kudlow doesn't it. Take a look at this interview with former Reagan budget director Dave Stockton.
The fiscal math doesn't work and Dave Stockton brilliantly describes why it's impossible to grow our way out of this via tax cuts and economic growth. AS he explains: Our spending policy is unsustainable and it's going to fail if we don't rapidly cut spending and increase revenues.
Stockton called the last 10-15 years a "Phoney Boom". I couldn't agree more.
Kudlow repeatedly tried to put David on the defense and the guy didn't blink as he shut down ALL of Kudlow's attacks one by one.
Kudlow consistently found himself speechless as he failed to come up with any logical flaws in Dave's brilliant thesis.
It should be noted that Dave Stockton was key part of the economic team that got things turned around in the early '80's via tax and budget cuts during the Reagan years. The fact that he is on the opposite side of the tax arguement is worth noting.
One by one everyone is slowly coming to the same conclusion: Stimulus spending has been proven to be a catastrophic failure. Austerity and managing the budget is our only path back to prosperity.
It's going to be a very painful road to get there but I see no ther way out and it appears many are also starting to think we need to make some adjustments.
Let's hope we start making the tough choices like letting the insolvent fail before this country goes down the tubes.
We need to open up all of the balance sheets and get back to sound accounting standards. This economy is going nowhere until we make these changes. I don't care what the market does in the short term because its meaningless in the long run because the current system is unsustainable.
Our financial system has been run like a Ponzi scheme for the last 30 years and we have run out of suckers to sell to.
7 comments:
Catching up on my reading last week, I wanted to correct something you said when the home sales report came in.
"Comparing May to June is essentially meaningless because home sales fluctuate depending on what time of the year it is.
You must compare month versus the same month from the previous year in order to see an accurate number."
Actually, thats incorrect because this was a seasonally adjusted number. Thus, comparing the current vs the previous number is perfectly legitimate.
Thats all I wanted to point out. Love your blog - keep it up!
anon
Thanks for the correction and the feedback.
Glad you are enjoying ythe blog!
Note about halfway through the clip where Kudlow basically says to Dave Stockton: "I'm going to give you a chance to take back everything you said in your article about letting the tax cuts expire being a good thing...", and Stockton shoves it up Kudlow's ass.
The new televangelist(thats what I call them now, they sure as hell aren't reporters or journalists) will harangue you, harass you, and beat you down if you don't agree with their agenda,and their corporate master's agenda.
We don't get news anymore. We just get stuff reported to the slant of whatever elitist is paying for the airtime.
CT
LOL
Yep
Thats why it was so fun watching Kudlow get his ass whooped.
All it takes is a little common sense to win any arguement against any of the spinmeisters.
Post is gonna be late again tonight folks.
Playing catch up after vacation.
"Anon said...
Actually, thats incorrect because this was a seasonally adjusted number. Thus, comparing the current vs the previous number is perfectly legitimate."
Not surprised Jeff screwed that one up. He refuses to believe that sometimes, some things, just quit going down forever.
Same thing happened last year when I pointed out Case Shiller went positive for the first time:
http://thehousingtimebomb.blogspot.com/2009/08/is-wall-st-buying-ben-bernanke.html
Notice the way he wails and thrashes about, but refuses to admit the truth, (that Case Shiller went up). All part of his permabear agenda.
Best part is when he said "I can almost guarantee that home prices will be lower a year from now."
Its 3 weeks away from when that prediction of his will mature...I Wonder how that one is gonna turn out?
"Notice the way he wails and thrashes about, but refuses to admit the truth, (that Case Shiller went up). All part of his permabear agenda."
I dont know about that. After all, I pointed out the same thing to him here, and he responded "thanks for the correction".
Besides, your comment was 1 year ago when things were just awful. Were we really to believe that housing was going to take as abrupt a turn as it did? I for one cant blame Jeff for not seeing it coming. I didnt.
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