Oh Kudlow
So I’m watching Kudlow and Company tonight, and Mr Kudlow is pounding the table on the thesis that we will be in a continued bull run thanks to the falling price of Oil. I agree with the idea, but where I do not agree is that he uses the decline of oil as a catalyst for gas prices to go down, which will allow money to go to mortgage payments… and ‘bam’… no more credit crunch.
I just disagree so much. More layoffs are still coming, mid/high $3 gas is still too high and the high quality mortgage paper is being hurt by people who can afford to pay them but choose not to. (Why would anyone pay a $500K mortgage when the value of the house is now $300K? They don’t, and default. Granted that rate of default is decreasing, which benefits the financials, but we are still in a ‘consumer washout’.)
