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[Music]
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well certainly it appears the financial
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markets like it uh uh generally the
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Republicans are considered to be more
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favorable towards business I think
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particularly lower taxes uh uh we see
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early signs the Obama Administration is
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is willing to compromise on the taxes I
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think that's going to be uh an exciting
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end in these uh to the the lame duck
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session about how are they going to
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extend or to what extent they're going
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to extend uh the tax cuts that's the
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most immediate question but further down
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the road clearly uh more regulation is
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not in the cards for business and that's
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one of the things they objected to under
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the Obama Administration well there's
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there's gridlock if the president is
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different than the Congress and if the
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two houses of the Congress are are
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different of course it's often been said
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that that actually gridlock is good for
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the economy because a lot of the laws
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that are passed are not good for the
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economy so the West laws that are passed
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uh is better so I'm not I'm not
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concerned about that I mean if there's a
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National
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Emergency all the parties are going to
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get together in response to 911
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something like that we know that's going
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to happen happen but when it comes to
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contentious issues like that stalemate
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is not the worst situation I'm very much
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in favor of this program of the Federal
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Reserve 600 billion called quantitative
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easing uh I I think it's very positive
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uh I think that uh it will push Banks
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now into a position to be more willing
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to lend uh
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because basically the Federal Reserve is
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giving them $600 billion worth of
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reserves now they already have an awful
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a lot of reserves but they they need
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that to cover bad loan losses
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regulations Etc I think if they offered
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more reserves on top of that they' be
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very tempted to push that out into the
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lending Market uh the margins are very
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high for them right now and uh I think
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this is the push that is needed I think
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this is a very favorable uh policy by uh
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banki and the fed well the the problem
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is how much will this depreciate the
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currency and and that is the biggest
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concern I think most of the depe iation
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honestly is already occurred in
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anticipation of the quantita easing of
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the FED I actually think that if this
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stimulates the economy as I believe it
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will that we will see a stronger dower
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uh in the future particularly against
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Europe uh and Japan so I'm not too
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worried that it's going to cause
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continued depreciation and I think that
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that will lessen some of the
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international concerns about this well
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there's been a lot of volatility and
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exchange rates whenever get vola you get
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talk about Capital controls but I don't
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think we want to go down that route uh I
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mean really the free float flotation of
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capital is a critical ingredient to uh
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global trade and and the emerging
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markets and and the success of the world
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economy so there'll be a lot of talk um
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if the do does strengthen as I
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anticipate in the future I think a lot
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of that talk will die down and we won't
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have any restrictions on Capital well I
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I think we we want less restriction on
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both sides I'm not in favor of what the
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house had done in trying to close down
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on China or threaten China uh with that
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I think that the free TR trade should go
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both ways and uh but even if the other
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countries don't respond which I hope
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they do because I think they'll be
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better off I think it's still very
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harmful for us to take a a position if
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you're not going to if you're not going
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to allow our Goods we won allow your
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goods because I do think that the
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allowance of goods into our country uh
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is a big positive for us and world trade
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and will ultimately lead to more demand
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for our products abroad so I'm I'm glad
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he's doing that but he should not react
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if they if they don't allow more trade I
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don't I think a unilateral reaction by
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the United States uh would be very uh
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detrimental I I consider this week to be
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a trifecta victory for stock investors
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uh first of all they got what they
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wanted which was you know Republican
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control of the house on Tuesday um on
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Wednesday the the Federal Reserve
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announced a pretty aggressive
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quantitative easing program which I
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really do think is is that liquidity is
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going to move to a great extent into uh
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risky assets and including stocks and
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then on Friday we had the employment
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report which was one of the best reports
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we've gotten in a long time I think all
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these three ingredients are going to set
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up to a very positive fourth quarter
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here for for stocks that that I really
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think will probably extend into 2011
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what I am worried about is if there's a
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total stale made on the tax issue and we
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start getting higher withholding on on
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taxes in January because the old tax
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rates will take effect that could be
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very detrimental so I'm I'm hoping that
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there's at least a degree of Co
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cooperation uh to to temporarily freeze
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the taxes until a more permanent
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solution can uh can be rought but uh
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outside of that I I I think it it looks
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quite favorable uh for a year end
