Media Appearance: Kudlow & Company (2/1/08)

I will be a guest on today's show. Along with the economy and the market, we'll likely be discussing the changing face of the Washington-Wall Street connection.

Comments

[J. Bridges]

Mr. P,

Enjoyed your appearance on Kudlow last night, but I enjoyed seeing the astonishing level of complacency and self-satisfaction among the other guests even more. The crusade to find naive bagholders for the street to sucker continues unabated, it seems. Sure, we could squeeze another few percent upward in defiance of reality, as Jeff Mathews seems to think. But, as you noted several weeks ago, the longer any sort of cathartic selling is delayed, the greater the chance we will see another, even more powerful cascade of selling (i.e. an actual crash).

And, the notion that the Fed can save the economy and the market along with it, is more than dubious. It's reckless.

``The Fed finally stepped up,'' said Jeffrey Kleintop, who helps oversee about $163 billion as chief market strategist at LPL Financial Group in Boston. ``They gave us what the economy really needed and what investors needed to get their confidence back.''

Translation: "The Fed bailed out my portfolios big-time. I was nervous about a major wave of redemptions, and thinking about de-leveraging some positions, until Ben saved the day."

This sort of comment makes me wish there was a derivative to short Mr. KleinTOP. Simply unbelievable.

Now, no one wants to see a deflationary death-spiral, but a purging fire cleans the forest of a lot of dead wood (and vast amounts of Kleintops).

Mr. P, if you have time in the coming weeks, I'm sure your readers would like to hear your analysis of the bond insurer bailout mechanics--specifically, how it's going to fail. Or, perhaps your take on the fallout from China's winter of discontent (commodity hoarding, inflation ripples felt across the world, etc.)

Best,

JDB

[Seymor]

Michael Panzer,

missed the show, can you write about it a bit here. Sounds like the economy is just doing great according to CNBC- nas up big fri- mergers will continue, we should go 100 percent equities