I don't generally watch Larry Kudlow, host of 'Kudlow and Company' on CNBC and host of a radio show. He is a typical right wing economic pundit (and former Reagan economic advisor), whose economic punditry often strays into the political realm, where he regulary attacks virtually all Democratic economic issues, and unswervingly supports the Republican.
But while channel surfing on August 25th, the first day of the Democratic convention, I came across a few moments of Kudlows' latest anti-Democratic rant, and made a mental note to look back at what Kudlow had to say on that date, and see how his crystal ball worked out.
Here is what Kudlow had to say on August 25th, leading into a panel discussion
Right from the get-go, today stocks slumped, despite decent housing sales and steady oil prices, and wound up finishing the day down over 240 points. I blame the Denver Dems (snip) High taxes, especially on successful rich, income redistribution, bash businesses, no drilling, trade protection. Who is going to supply the capital investment to grow the economy? How exactly will we fuel the future growth of America? The Dems are not showing me free market capitalism, I'm sorry to say, and I don't think they have a true economic recovery plan. This week, in Denver, could be a bumpy ride for stocks.
Well, Kudlow was right, it was a bumpy week for stocks. For the week 08/25 - 08/29, the Dow Jones Industrial average was down 84.10 points
(-0.007%); the Nasdaq was down 47.19 points (-0.019%); and the S&P 500 was down
9.37 points (-0.007%).
So was it the Denver Dems, or was it something else? Something like a lingering recession; massive decreases in housing prices and people losing their homes; poor profitability among companies; the US dollar dropping against other world currencies; an increase in the unemployment rate, which hit a five year high of 6.1% last week?
But if it was the Denver Dems, what does that say, Larry, about the St. Paul Repubs? Because here is the market response during the week of the Repub convention, 09/01 - 09/05.
The DJIA down 323 points (-0.027) or two full percentage points worse than during the Democratic convention. Nasdaq down 111.64 points
(-0.047) or two times worse. And the S&P 500 down 40.52 points (-0.029%) or more than four times the drop of the previous week.
So Larry, I'm anxiously waiting for your explanation. If the Denver Dems caused market decreases less than 1% for the DJIA and S&P 500, and a decrease of just under 2% for the Nasdaq, how then did the St. Paul Repubs cause decreases of almost 3% for the DJIA and S&P 500 and a decrease of almost 5% for Nasdaq?
I'm waiting for your explanation Larry. And waiting, and waiting, and waiting. Larry? You there? Hello.
Didn't think so.