President Trump’s top economic adviser has been making excuses for the Federal Reserve for a long, long time.
In fact, he really didn’t get as much credit as he probably deserved for lulling Americans into a false sense of security prior to the housing collapse of 2008, which he didn’t see coming.
That’s kind of a trend for former CNBC host Larry Kudlow: he’s usually overly optimistic and he never sees the recession coming (as opposed to Peter Schiff, who predicted 10 out of the last 2 recessions). Unlike Schiff, Kudlow doesn’t err on the side of caution, which is too bad given that he’s been tapped to head the administration’s coronavirus “stimulus” package.
Kudlow assured the world in 2014 that we would have a trade surplus by 2020 if we became net exporters of energy. That never happened. He assured the world in 2005 that we would never have a collapse of the housing market. The housing market imploded just three years later.
Does the President really want to give control of fiscal policy to a guy who, by his own admission, can’t perceive the largest material risks to the economy? Perhaps there’s a method to his madness. If the coronavirus is going to tank markets no matter what, the people the President puts in charge of responding to it are probably going under the bus. That being the case, it’s hard to think of a more deserving person than Larry Kudlow. Maybe he’ll finally get the credit he deserves for the Mother of All Bubbles.
We’ll also be talking about the new migrant crisis that Erdogan unleashed on Greece, the ouster of Mick Mulvaney as the President’s Chief of Staff, and the spread of the coronavirus.
This is EPISODE 384 of So to Speak w/ Jared Howe!