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-- -- Cyprus is bracing for the reopening of its banks tomorrow our next guest says it's simple if you tax people on deposits they won't.
Make deposits joining us now Arthur -- chairman of Laffer associates who served his economic policy advisor.
President Ronald Reagan good to have you with us.
Thank you very much Lou it's wonderful to be with you.
Let's start with Cyprus I'm curious this picture -- your your sense of it doesn't amount to a hill of beans is -- incidents and rose.
-- terrible play by the shorts -- your judgment.
Well I don't know but the play by the shorts but.
-- let me just tell -- the -- and deposits or not allowing people to withdraw money whoever would deposit money in the bank if they didn't let -- withdraw.
I mean that's about as silly as any concept I've ever heard and let me just tell you this is precedents once -- -- -- that these guys can do stuff like that.
Yeah there's no way you can take that power away from them and there's no way you can rebuild the confidence in the security back into -- but he assistant cypress that's it it's it makes no sense it's the hotel California's school about exactly I just watch the Eagles special and what can I tell you you can get it but you can't get out -- -- if.
I love the idea that the this is the end of the International Monetary Fund has fallen a long long ways.
As has of course the EU well I didn't have that part of -- But for the European Central Bank.
Mario Draghi is irrational it's -- Smart man to go along with -- -- -- -- trying to scoop up all of that money that the Russians had.
In the Cyprus banks this this is ugly stuff and in that you've got the Dutch finance and I'd -- this comedy.
The Dutch finance minister comes out says this is -- template for Italy for Spain for Portugal -- off.
What -- you know the idea that were there would be a template is a good thing it's just that they would have the judgment to do this.
But going into our markets basically saying you know.
Enough -- your nonsense.
We're going to just go ahead and keep -- bulls running here but do you think that's likely to continue.
Well over the long run yes I do I think them arguing that the long run thing.
Well I'll do short run I think in the short run to it -- I just don't like being called out as a mistake.
Very quickly thank -- that will defer my first two days -- thank you very much but you know stock prices are extremely low by any historical standard -- in interest rates.
Tax rates -- the -- profits.
They are very low and you know the real market if you look at it peaked and let's say march or June of 2000 it's still way down if you look at the S&P.
The NASDAQ is probably not even half -- what it was back then so we have a long way up to go and I think we're gonna do it it.
It's a poor recovery to slow recovery we should have been doing a lot better but it will continue to plug along and housing will be ultimately the thing that leads.
I'm one of the things that I keep my hand is -- these markets deserve a premium compared to all the other markets around the world.
That's true and I think we're beginning to get -- the economy is stronger than.
All but let's say China.
Around the world and you know that's that's that praised by -- Damning by faint praise said it may not be a but I am going with what we've got to you've got to know your right.
And -- and do you think that we're going to see things -- build here we are we don't point to start getting a little stronger economically.
Tomorrow should GDP for the import order do you think -- -- vision up.
Or deny that I did I probably short term.
Yet probably a little bit -- But -- knowledge it's still a terrible -- just a terrible number and you know what you're looking at here is that the worst recovery in US history and you know it is picking up a little bit of -- but it's not nearly enough to get -- to the prosperity where we should be.
But you know these things are now taken time but.
Once the election in 2014.
Takes place the Republicans take the senate and in 2016.
A pro growth president with a great congress you'll get the bull market that we got in the eighty's you hit the ball market that we got with Clinton.
And I'm looking forward to that time period.
Our Barbara that you just told -- just hang on but hang on you've got to tell ya know that's true we got an -- I don't know if you don't survive you can't take profits can't win it that's true -- you can't art Laffer thanks very about -- -- -- couldn't talk truth about it that's really.
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