Hypocrisy & Broken Ideology

This video made my blood boil. Kudlow, who positions himself as a free-market guy, argues that ALL European bank debt should be guaranteed by EU governments – a socialist solution to a free market problem.

Rick Santilli rips into Kudlow’s clear hypocrisy and broken ideology. The US simply transferred the debt problem from the private sector to the public sector. So instead of a private sector crisis we will see a public sector crisis.

One can’t not touch on Robert Pavlik’s comments at the beginning of the video…he argues the fundamentals (specifically, economic growth) are good so the markets are reacting to something other than fundamentals. Clearly, Pavlik doesn’t understand that markets are forward-looking while fundamentals, like GDP growth, are backward-looking. Leading indicators around the world have turned down and systemic risk could lead to future erosion of fundamentals – this is what markets are looking at.