Friday, March 07, 2008

Ryding Has It Right

I am for economic stimulus. Don’t get me wrong. But I am for real economic stimulus which is cutting tax rates. Because this market is short of a few things: It’s short of liquidity—the Fed can deal with that. It’s short of capital. If we want more capital, we should start increasing the returns to capital, and cutting tax rates, or at least making tax cuts permanent. This is very important…You’ve got to get Washington to deliver on tax cuts and incentives.

-John Ryding, chief US economist at Bear Stearns on CNBC's Kudlow & Company last night