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Yeah on that that all bets are built and out of had been bombed out -- I know little below Wall Street backs -- We're reminded me about over these many years we've known each other is that -- yeah.
You know Lowell street -- boards -- certainty but but but one of the certain things like conceived at least this summer is.
Escalating scandals that could touch the Oval Office they haven't as yet but the high as they go is may be edited at the Justice Department he loses his job.
And I would figure that environment when Wall Street at least -- to see certain things done like addressing the deficit.
And and -- finding some sort of a simplified way to deal with our taxes.
That this gets in the way of that and end and this is where gridlock is not good.
Both of those things would be good that is tax reform and it and -- a lower deficit or that Linda -- out the window right.
It is out the window but the cyclical deficit is falling thanks to a moderately growing economy and some austerity.
But 900 pounds billion Rendell and closed lower and that's a good thing.
I'd I don't know I -- Your point is well think of -- John this this euphoria over the deficit coming down only 682 billion dollars amid.
I guess when you -- two trillion dollar plus deficits provide is running you've you've that is progress like I grant you.
But it is still more money piled onto a debt and I think it's a short -- -- -- -- Absolutely there is a very much an illusion first one thing that happened last year we celebrated a lot of taxes the gulf facts.
Rates were going nuts he got an artificial factor -- and he had this.
Demographic Phnom -- when you really start getting massive deficits is about 45 -- -- on the road.
Because -- -- security Medicare and retirement of the baby -- we still showed the United States -- say yeah.
A negative net worth of of about forty trillion dollars.
And unfunded liabilities of over a hundred trillion dollar -- that doesn't get fixed it did in fact now's the time that got doubt they will act for the reasons you said because congress is very short term -- But our problems -- get better they're actually they're getting worse if you look at long term perspective Patrick.
Now you know the attorney general I think could go down the troops.
Over the scandal over James Rosen and A -- I think the -- gushing scandal does not reach the White House the president was out here given the same foolish talking points.
As Susan Rice but I do agree with you -- There's a potential for the IRS to rekindle the White House -- -- they are now.
But if that individual ahead of the IRS was over -- White House.
It's hard for me to believe he never sat down and talk to one of the political fellows and mentioned the word Tea Party.
So I think if they get that scandal into the White House and someone has not told the truth.
That's always a problem if they get it in there then you could have an impact on the president which I think that might impact what's going on in the economy.
And certainly in the market.
You know above it it -- whenever I look at markets that are running ahead of themselves.
I would say well here's something to step back and and and just.
Regained some composure as I do in the middle of a meltdown let's step back and get get a sense of where what this means and -- overdoing it.
Fixation on old things bubble like and whether we are forming a bubble and whether one of those big bubbles.
Is about the Bob do you regard to interest rates and on the -- -- -- second that even if the Fed pulls the front.
Or this notion that -- everyone loves gridlock when it that gridlock this time around addressing some issues that.
Don't have a long shelf life on them.
Aren't addressed what he's -- And I don't think we've got -- a bubble and stocks or bonds we still have the stock market yielding more than a ten year treasury that that caused stocks to be -- not expensive.
-- -- -- -- -- -- Had been any year announce that -- be at very low and then that's it.
You'll go all the two passing zone during your -- -- law provides us CNN's run -- Lil I talk to young people here always keeping my demo in mind Bob.
Didn't tell me you know me all I'm getting their -- -- get stuck with a force something more -- and I'm thinking to myself that's it my wife and I first had her day.
And I think -- what their personnel that is only that and when that prospective changes Katie bar the door now.
Well -- -- but but all all we have an environment here where the economy is not strong enough to withstand very high interest rates if they rise -- much.
The economy always give it interest rates have come right back down neither do I watch the Fed.
Important but habitat we could use the same argument during the Carter years in on it rates can't get too out of whack right.
-- -- -- 21 well they were very different absolute levels are cute and it really matters is the level of interest rate underside and I -- but I do believe this I do believe that.
Every I mean the Fed is really the game everybody should watch that I think.
And if Bernanke starts to move in the other direction I don't think I am almost certainly will have some kind of dramatic impact.
On the market because I think everybody tends to believe.
That is what keeping it up and keeping it going Brian ball quite frankly if interest rates go up I think the market -- -- -- -- rapidly.
John -- I agree I agree with with what has -- the only quick thing the of the somebody people don't realize this.
Under dot frying consumer compliance agency just sit very low lending standards for what's called -- sidelines.
That has a lot to do with what's happened in the housing market these standards are lower than sub prime -- -- -- We're probably setting the foundation for another housing -- it might be about seniors -- read these things take a long time become a -- But it is very bad public policy and they've actually incentive how -- lending again we seem strange given what we just went for it.
Both these strategies I would qualify under these new standards so guys I want to -- -- -- open.
Very very much they're chatting with you.
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