During a period like this, with stocks plunging almost on a daily basis, it’s clear that fear and shock are ruling the roost. But fear can be overdone. As someone who has been around awhile and has seen many sell-offs, let me offer some advice: Do not panic. Market corrections come and go. They are not the end of the world. Most times they are actually healthy.
Commentary by Lawrence Kudlow
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There he goes again. Out on the campaign trail, President Obama is proposing more federal spending as his answer to sluggish growth and jobs. That won’t do it, Mr. President.
Stocks and bond yields are sinking as Wall Street disses the debt deal and instead focuses on a likely double-dip recession.
Standard & Poor's government-credit-ratings guru David Beers played his cards close to the vest on the topic of a U.S. downgrade in our CNBC interview this week. However, this head of S&P's global sovereign-ratings business -- with a staff of 80 covering 126 countries -- issued three strong warnings to the debt-ceiling negotiators in Washington.
There are a lot of known unknowns about the new "Gang of Six" budget proposal. But conservatives should hold back from trashing it. Why? There's a large, pro-growth tax-reform piece in the plan that would lower tax rates across the board. This is a stunning reversal of the Obama Democrats' soak-the-rich, class-warfare campaign.
As uncertain and unruly and disheveled as the debt-ceiling debate may be, there are still good grounds to reach a deal. It could help the economy. It could keep the policy ball moving in the direction of smaller government. It could add a key business tax incentive for economic growth. And it could even stabilize the dollar.
There are a lot of pieces to the debt-ceiling deal. There are the taxes upon taxes, as The Wall Street Journal editors describe it. That's the roughly $1 trillion in new Obama taxes on top of what he's already signed into law. It's an economy and jobs killer.
Here's some friendly fiscal advice: Anytime some Washington big-shot like Ben Bernanke or Tim Geithner claims that immediate spending cuts in the debt deal will harm the economy -- ignore them. Completely. You know why? Because in this great country of ours, spending never goes down. Never.
It seems this is the Democratic answer for every single issue, every problem, every debate.
Did the International Energy Agency (IEA) just deliver the oil equivalent of Quantitative Easing 3?
Former Minnesota governor Tim Pawlenty turned out a blockbuster economic-growth plan this past week, including deep cuts in taxes, spending and regulations. It's really the first Reaganesque supply-side growth plan from any of the GOP presidential contenders. And he caps it all off with a defense of optimism as he charges ahead with a national economic growth goal of 5 percent.
Political advantage can be fleeting. A couple of months ago, during the winter quarter, job gains looked to be picking up, unemployment was easing lower, and President Obama's re-election hopes looked more secure. But things sure have changed.
With a flamboyant downgrade of the outlook for economic growth, jobs and profits, Wednesday's 280-point Dow plunge to launch the so-called June stock swoon is a warning shot across the bow.
House Majority Leader Eric Cantor turned the policy temperature down on austerity this week by rolling out a strong economic-growth agenda. Headlined by a 25 percent top tax rate for individuals and business, the Cantor package includes regulatory relief, free trade and patent protection for entrepreneurs. It's job creation and the economy, stupid.
As the International Monetary Fund gets ready to choose a successor to Dominique Strauss-Kahn, who resigned following his arrest on charges that he sexually assaulted and raped a hotel housekeeper, it would be a good thing to step back for a moment and ask: What should the IMF do? More specifically, can the IMF possibly morph itself into a worldwide force for economic growth instead of Bailout Nation?
In the aftermath of the killing of Osama bin Laden, I found myself agreeing with Charles Krauthammer that this was a global game-changer for American greatness. It was a gutsy and courageous decision by President Obama, brilliantly executed by the Navy SEALs and all the intelligence and support behind them.
When oil prices blew sky high in 2008, ExxonMobil paid $36.5 billion in income taxes, $34.5 billion in sales taxes, and $45 billion in other taxes, for a total of $116.2 billion in taxes paid and collected in 2008. That’s according to Mark Perry at the Carpe Diem blog.
We thought tax reform meant lowering rates and broadening the base by eliminating or cutting back on various deductions, credits and loopholes. That's what the Bowles-Simpson commission proposed. That's what Paul Ryan and David Camp are working on. And that's the pro-growth model.
Washington shutdown fears are sinking the U.S. dollar, according to some news reports. Surely there's something to this, as investor confusion rises and confidence falls, and as Washington seems to be gridlocked over a few billion dollars.
Of all the discussion about Paul Ryan's big-bang budget plan, the element I like best was caught in this Wall Street Journal op-ed title: "The GOP Path to Prosperity." In other words, it's a growth budget. It has plenty of spending cuts, but it also has significant pro-growth tax reform.