Great Words from Larry Kudlow

I admire Mr. Larry Kudlow, former staffer in the Reagan adminstratio and suply-side advocate. He made a great post on Kudlow Money and Politic$ (also on on National Review under Kudlow blog).

Here it is:

Monday, October 27, 2008

Bailout Weary [Larry Kudlow]

Supply-side father Art Laffer penned a blockbuster in today’s WSJ entitled, “The Age of Prosperity Is Over.” (Art and Steve Moore have a new book out with the same title.) It compares the Bush administration and Congress with Herbert Hoover for all their bailout actions.

The money sentence: “Financial panics, if left alone, rarely cause much damage to the real economy, output, employment or production.” Art asks: If all these bailout measures are so good, then why is the stock market so bad? It reminds him of Richard Nixon or Jimmy Carter. Art also argues that huge budget deficits will increase future tax burdens on the economy and will do nothing to encourage economic growth. He says stop rewarding failure.

And let me add, in today’s news, the car companies from Detroit are looking for bailouts. Perhaps other industries, as well. Plus, the Treasury will be parking new capital into the insurance companies. Who knows? Maybe retailers will be next. By the time we’re done, perhaps oil companies, who are now suffering from $60 oil, will get bailed out, too.

I wonder if our free-market capitalist system doesn’t really need a nice big failure to reassert its bona fides. Yes, I am growing weary of all this.

Meanwhile, a new paper from the Minneapolis Fed takes issue with the credit-crunch hypothesis. Looking at Federal Reserve Board data, they note that various forms of bank loans are actually rising, not falling. Putting a pencil to their analysis, I can report this: Total loans and leases from U.S. banks are growing at a 19 percent annual rate over the last three months. Business loans are up 19 percent. Consumer loans are up 13 percent. Real estate loans, which include home-equity and commercial real estate loans, are up 15 percent at an annual rate.

The worst story is inter-bank loans. They are flat. That’s the LIBOR story, which is healing after the FDIC guaranteed bank-to-bank loans. The LIBOR rate has come way down. I think the FDIC move was the single-most important contributor to credit stability.

But when you look at all the other loan categories that are rising, and then the 20 percent growth of the basic money supply, and the tax-cut effect of plummeting energy costs, you have to wonder: Just how bad is our economic story?

Maybe Washington oughta slow down and stop panicking.



The Uncommon Sunday Recliner: Was John Deeth WRONG?

Hopefully, when the post-election days are among us I will be able to contribute to a new segment I would like to introduce to you as the The Uncommon Sunday Recliner Post. It will feature a more relax post on political news, with something that has little consequence.


In light of election season, I figured I would point out an error by a fellow Iowa blogger. He wrote in February of 2006, “They [Republican Party] know an open seat primary will nominate a Steve King style winger, and that kind of candidate is unelectable in this district.” Fortunately, Mr. Deeth was wrong, very, very wrong. We have a wonderful, non-Steve King style winger candidate in Dr. Mariannette Miller-Meeks who can represent this district in the independent nature that it deserves. This district deserves a middle-in-the-road politician who is playing the party line, but representing the moderate-conservative district from a moderate-conservative standpoint.

Here is the post:

“Saturday, February 04, 2006

Leach to UI?

Press-Citizen writes at length on the persistent rumor that Jim Leach is being considered or may consider the UI presidency:

“I know there’s been some speculation out there, but he has nothing really to add to or subtract to — we basically don’t wish to make any comments on this,” said Gregory Wierzynski, Leach’s chief of staff. “He’s obviously flattered by the rumors, but he’s not sought this job and he’s proud and pleased and happy to be representing those people of the 2nd District.”

Leach, 63, who has served in Congress since 1976, lives in Iowa City and is up for re-election this fall. Wierzynski said of the possibility of the search committee approaching Leach, “I think we’ll cross that bridge when we come to it.”

Regent Amir Arbisser of Davenport said that he has heard the same rumors and that Leach has talked with some officials close to the situation. Arbisser called Leach a good friend, but he said he has not talked with him about the UI opening.

Arbisser said although he thought Leach has many skills that would make him a good president, not having a background in academic or hospital administration would be too much to overcome.

Ultimately this won’t happen for the same reason ambassadorships and the World Bank post haven’t happened: the GOP knows he’s the only Republican who can win this district and they don’t want to lose the seat. (Of course, they may lose it anyway; David Loebsack has plenty to say on that subject…) They know an open seat primary will nominate a Steve King style winger, and that kind of candidate is unelectable in this district.” (Website:




The Economic Case for Tax Havens

My apologies for not writing…

For those of you who actually read this, I apologize for not writing. I have been too busy campaigning that I cannot take the time nor write with a somewhat objective view while working on a campaign. I will start to write again  come November 5.


My Electoral Map

Colorado: Obama by 2.5 points

Florida: McCain by .1 points

Iowa: Obama by 6 points

Missouri: McCain by 3 points

North Carolina: McCain wins by 4 points

Ohio: McCain by 5 points

Pennsylvania: Obama by 6 points

Virginia: McCain by .0001 points


First Congressional Race:

Braley wins 64 – 36 of Harstsuch

Second Congressional Race:

Miller-Meeks wins 52 – 48 over Loebsack

Third Congressional Race:

Bosswell wins 52 – 48 over Schmett

Fourth Congressional Race:

Latham wins 54 – 46 over Greenwall

Fifth Congressional Race:

King wins 55 – 45 over Hubler

Iowa Senate Race:

Harkin wins 57 – 42 over Reed, Rathje gets 1 point


The Fiscal Wake-Up tour has a parterning video out about how our nation’s “sound” monetary and fiscal policy is doing.


One nation. Under stress. In Debt.

Obama’s Social Security Tax Proposal