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Larry Kudlow: The Whole Stock Market Will ‘Literally Evaporate’ If Elizabeth Warren Tries To Expand Healthcare
As is custom on NFP days, Larry Kudlow made the TV rounds on Friday morning to chat about the jobs report which, by all accounts, far exceeded expectations despite hurdles that should have tripped things up.
Larry was, of course, happy about the numbers, but what really stood out was his bombastic criticism of Elizabeth Warren's 10,000-word proposal for funding "Medicare for All".
Warren has run a highly effective campaign thus far, and has overtaken Joe Biden in several polls. Aside from gene
“You keep using that word, I do not think it means what you think it means”
Inigo Montoya
We, as a dumbed down society, have “literally” changed the meaning of the word “literally”. We also keep repeating things and referring to things that are “out there”, and they are “out there” “right now”. I keep wondering where the hell “out there” really is, as I literally would like to go there “right now”.
why are the dems not more vocal onthe deficit/tax cuts??? why do they let gop claim a ‘cost’ for universal care while assuming all will continue to pay current insurance/healthcare costs alongside MFA??? why hasnt the dem party had a come to jesus moment regarding hrc and wassermans interference in their own primary process that cost Sanders the nomination..he’s the only one who could have (and can today) go toe to toe in the yelling with our current don?? djt wouldnt be reelected today….but as the volume turns up next summer will the dems have anyone who can out bombast him?? theres PLENTY of material!
CBO completed its current economic projections on December 4, 2018. CBO expects real GDP to grow by 2.3 percent in 2019 and by an average of 1.7 percent per year from 2020 through 2023.
By contrast, trump promised his base he’d be hitting 4% annual yoy well into his third of 4th term, however, in regard to the kudlow’s improvident utterance: “devastating, catastrophic effect [and] would probably take out close to 15% to 20% of our GDP” — where are we now?
trump’s promise @4% – (CBO projection) 1.7 = 2.3/1.7 = trump and his idiots being 13% off course as of last year — but, as Real GDP continues to fade lower, we can easily assume that the trump GDP performance will be off by perhaps 20% — which, actually impacts the deficit and budgets by a YUGE amount — and as we roll into the future, the trump lack of growth will be increasingly challenging for the economic pundits to spin in a way that connects the pocket books of the voters with the reality of his friggn failures. Nonetheless, have not had time to look at Warren’s plan …
The healthcare sector will get whacked hard by Warren’s version of M4All, but I think everyone already knew that.
The impact on the financial sector looks minor, with three exceptions.
The insurance industry will, of course, get whacked, like existentially so.
Some/most HFTs will have a hard time with a 0.1% transaction fee.
Annual taxation of unrealized capital gains won’t make much difference to returns. (Assume start with $1000, 5%/yr price return for 5 years, 20% capital gain tax – under current system, after-tax annualized return is 3.23%, under system of annual taxation of unrealized capital gain, after-tax annualized return is 3.19%) But it could result in more trading volume.
Probably a positive impact on consumer sectors (more take home pay for average consumer) and a small negative impact for some industrial/technology names (no accelerated depreciation of business equipment). A negative impact on some defense names.
Basically, unless you’re a drug/device company, hospital/provider, health insurer, the Warren M4All plan seems like it will be at best a third-tier factor.
Thanks for the level-headed commentary, jyl.
There isn’t anyone, other than shareholders, that will be upset by the existential crisis faced by health insurers. Frankly, they’ve accelerated their own demise by extracting mafia type payments from those in the industry.
Kudlow is a marvel to behold, like a car crash / train wreck that we can’t take our eyes off of. What else explains why the media turns to a fake economist who’s predictions are never right? Fox I understand
Let’s hope Kayla Tausche’s recent episode with him ends his run on CNBC? Let’s hope that CNBC has SOME integrity to not subject their viewers to his total scam.