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Dow Industrials up in July up today -- they've gained in nine out of the last ten months.
But our next guest says there are many reasons to be cautious.
Joining us as an -- -- mesh the chief economist at high -- -- global insight an -- if you buy into the stock market now looking at how much.
The major market gauges have rallied this sheet just this year and the NASDAQ -- is almost up 13%.
Are you betting that somehow of those policy makers at central banks around the world -- gonna rescue us from what is -- very troubled economy.
-- you're right that old but a lot of the recent market rallies have been due to expectations.
Of further easing and further liquidity injections.
Especially by the Fed and the European Central Bank.
I think you have to sort of say is this good news or is this lack of bad news I think it's -- a lack of bad news in the sense that.
I think what markets are very worried about was a meltdown in Europe that would drag down the US.
-- -- this sense they have now is that probably isn't gonna happen say in that sense -- euphoric that a bad thing isn't gonna happen.
But in speaking of needing to happen to Washington later this year has to tackle.
So many problems whether it's up cutting spending whether it's extending the tax cuts.
Our people walking out on -- plank.
If you load up on stocks right now knowing what might not happen in.
Well I -- while I don't rule out a sort of hiccup if you well and in terms of the politics and and the market reaction I can't believe.
That anyone in Washington is gonna wanna be blamed for killing the economy which is what would happen if we -- over the fiscal -- so I suspect.
Don't come to their senses already they did I mean -- -- that continued resolution yesterday.
They're gonna kick back can down the road -- it's not gonna happen in terms of going off the cliff at the end of this year beginning next here.
As is that no politician in their right mind wants to be blamed for killing the economies that they'll.
Figure something now.
Well in terms of there's that deficit spending and the additional borrowing that's going on.
Is the Federal Reserve -- we're gonna hear from the Central Bank later today is the Federal Reserve just giving more grain alcohol -- To politicians who -- already wildly drunk.
On borrowing money.
I think there's always that risk.
But you have to consider what's the alternative especially given the fragility in the global economy.
Given the fragility in the US growth rates that we've guy you know 11 and a half percent.
And unemployment rate that's stuck over 8% I don't think the Fed has a lot of choices there but I think you're right that the -- -- obviously it's letting the politicians in Washington.
Off the -- in terms of deficit -- an -- And their -- great top -- thank you so much and chairman Bair vanished being well you're welcome back anytime -- With the.
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