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Biological disease since the market's already worried about another Watergate summer bomber so far they have a funny way of showing today despite the downdraft today stocks are pretty much on a roll as they have been since the first and -- questions.
Then even the latest -- -- revelations this is a Barbara revelations RS revelation so many revelations.
You wonder aero why the markets down more -- they're not Bob Brusca isn't wondering.
One of the sharpest economic minds I -- knows there's something else going on your joins me now.
To explain what -- going on how with how the markets detached from Minnesota are hard at it.
Well I don't think politics Israeli.
Affected the markets -- you can see that they're still going up I don't think anybody really knows the significance of any of this.
The president was very quick to say this is wrong.
-- when he is asked the specific question about whether anybody in the White House was involved.
He said I didn't know anything about it he very cleverly sidestepped the -- -- legal response so I -- You know and that may just conclude too soon to call that -- -- But you really wonder if that's where we're headed if it gets to that stage it will affect markets but for now the markets are very happy that the only game in town as the Fed.
The Fed still adding liquidity.
And the question that's beginning to -- in the background is whether these new lower deficit estimates are right I mean that that it's kind of a hard time committing itself.
To all the liquidity that it's been pumping him to the markets.
-- even though the economy is looking great the economy -- one that looks great the next day doesn't go but the greatest concerts.
Sort of an adult in the room providing a lot of goodies and as long as that's very can whether all this other -- Well only so long as it securities purchases -- the -- to distort markets at the start the starting markets.
And that's going to be a problem and I might have been the case for a while -- there unrealistic anyway they distort reality.
What distort reality but I'm just talking like normal marketing function I market prompting a much mail or way of the view of liquidity -- -- -- -- market functioning.
But yeah I'm I'm I'm kinda concerned about the size of the Fed balance sheet -- about what the Fed is done -- about it.
As -- are affecting these guys another argument I -- talk about and a referendum on what's in the financial community.
And he was saying you know -- and -- all of this could be good news because editing that Stein he's the Obama's spending agenda or slows this health care.
And he turned albatross not everyone's of that you -- mind -- but but obviously is also a good actually in a flip way all of the guys -- -- -- of your post Obama anything that gives him a problem is good for you but you know I'd really rather have -- focus on the issues.
I'm really concerned about politicians lying about the bad state of Social Security.
And Medicare Medicaid and not doing an independent and not doing anything about the fact that -- still need to do that in these lower deficits may put that off even more.
And I really think that we need to pay attention to that because the album here -- -- because they're getting.
Yeah oh number absolutely he CBO numbers you see with you sort of gave them a sort of a backbone -- right and and and now you had these scandals.
They're not going to be addressed.
And and build -- future you know it bit that.
Tax revenues this year GDP are -- above historic norms.
So there really isn't -- -- -- the president -- -- -- take away tax breaks wanted to -- attorney time to start putting some of the spending and and setting priorities the problem is.
That we -- -- we get a new program and we spent we never got anything else and everything it just gets -- stop in the if inefficiencies -- get taken out.
And at some point you have to look at revenues as a share GDP and say hey.
That's pretty bad we've got to do something about that.
And we haven't reached that yet and -- more distracted now.
We -- Robert Brusca thank you very much and -- and to.
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