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-- market had a Black Friday -- its -- today major averages all ending this holiday shortened week with.
Significant gains love to see that the Dow closing above the thirteen thousand benchmark up a 172.
And the NASDAQ up 4% this week ending its longest losing streak in more than four years joining me now.
Scott -- chief market strategist for united advisor Scott welcome back to the show.
Hey I like this you know we we ordinary -- for the fiscal -- but now some ultra high and that can this can this trend.
Continue with this which renders -- just that one -- nice week that will remember for along time.
Well I guess it depends on what -- you referring to it could be the on again off again relationship that -- seem to have with the feds don't clip is probably here to stay.
I Jerry that's what we're probably gonna drive investors mad because there's going to be one day I'll tell you where -- Deeper gonna say you know worlds coming and taxes or go to the sky and then the next day it's -- like element we have a resolution that things are gonna be okay.
The reality is that somewhere in between which probably means the market.
Meanders maybe a little bit higher here towards India but nothing significant.
You know what -- -- your pre interview that I thought was absolutely crazy I couldn't get over at night you say that we probably over estimated the importance of the fiscal -- How is that -- possible the average family is gonna have a 3500 dollar tax bite if this thing goes through if we failed to do anything -- all.
This to me seems like an economy killer in a market blast why -- you so enamored of the fiscal -- Well here's why Jerry I don't think that 3500 dollar hit let's say to the average Stanley is really gonna happen I think there's going to be some sort of deal struck here where.
-- and each side is gonna have to give a little bit so.
My take on the fiscal -- the following I think it but it's it's -- notion that step when everybody's head it's certainly affecting holiday spending.
But it's something that is is becoming it's own issue I think we're blowing it up to the sense of where it's it's -- it was a -- -- -- -- Y two K reminds -- of the debt ceiling talks we have last year.
I mean these these all -- issues because we may have been issues I think net net it's a good fix for the long term of the economy.
But -- did pick up something interesting out of Ben Bernanke's statement last week.
About banks being too tight with their lending what did you make of that.
Jerry it's very interesting because Bernanke is talking about.
The unwillingness of the banks to lend to some of these more let's say un creditworthy people.
And the problem I have what that is.
Jury didn't banks are having to do that because Ben Bernanke himself.
Has killed the bank model and a sensitive you look back at banks and how they make money.
They borrow on the short -- the curve meaning they borrow that at the low end of the interest rate they lend it out on the long end.
So -- basically means that the consumer has to pay a higher interest rates in the banks make the spread right.
While the interest rate curve is not even -- a curve it's a flat board thanks to what the Fed is done so the banks are having.
Soon to be a little bit more conservative with their lending Ben Bernanke saying no banks you've got to go out led to basically everybody that comes to your door.
And we saw how well that worked out the last time it happened right.
That's one of the problems that we had Jerry and 2007 and 2008 and even in the late ninety's early two thousand's is.
Basically the banks -- to everybody and they didn't have any way to make up for the loan losses that we saw so yeah a lot of them failed.
I think that's where Ben Bernanke's -- ideas are misplaced he's got to look back -- history and see that that was something that didn't work out too well.
Why even historian for goodness sake -- -- -- be -- -- figure -- out Scott thanks for coming on tonight absolute pleasure having on the show as always come back soon.
We'll be right back -- my two cents more and we have.
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